Global growth optimism at lowest since July 2008

Mumbai: The Russia-Ukraine conflict has driven money managers' cash levels to the highest since April 2020 and hit global growth optimism which has fallen to the lowest level since July 2008, according to Bank of America's monthly survey of fund managers.

"Global growth expectations (have) plunged to the lowest level since the Lehman, global financial crisis of July 2008. The recent disconnect between global growth and equity allocation is now being corrected by a significant decline in equity allocation," said the Bank of America survey. However, fund managers still expect hikes by the US Federal Reserve, the survey noted.

The survey, which was conducted between March 4 and March 10, saw 341 fund managers participating, who collectively manage $1 trillion of assets.

Cash levels have surged to 5.9% and allocation to commodities at 33% - a record high, the survey showed. Allocation to global equities has slumped to the lowest levels since May 2020 but investors are 'very underweight' bonds not stocks, said Bank of America. "Investors remain overweight stocks, not underweight; equity allocations are not at "recessionary" close-your-eyes-and-buy levels," said Bank of America.