Investors remained bullish in July, supported by the belief U.S. interest rates will soon fall, preventing a hard landing for the economy, and now see geopolitics as the biggest risk to that scenario, Bank of America's global fund manager survey showed on Tuesday.
The survey, which polled 242 managers with $632 billion in assets under management, showed the largest monthly drop in global growth expectations since March 2022, as this metric fell to -27% from -6%.
The bank said this reflected the view that interest rates are about to start dropping, as investors see monetary policy at its most restrictive since November 2008, and that this easing will generate a 'soft landing' for the economy.
