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Despite attempts to restart economies, global investors remain cautious as fears that the coronavirus pandemic is far from over is mounting.
In the latest fund manager survey from Bank of America (BofA), 54 percent of the respondents said a second wave of cases is the “biggest tail risk” at the moment.
The majority also think that the economy may be in for a period of stagnation before making a recovery.
According to the survey, the number of fund managers that believe a U-shaped recovery, which occurs when the economy falls sharply without a clearly defined trough, is bound to happen has increased from 43 percent in June to 44 percent in July.
Those betting on a W-shaped recovery also went up from 21 percent to 30 percent during the same period.
Just 14 percent expect a V-shaped recovery, characterised by a steep decline and quick growth, down from 18 percent in June.
“Investor sentiment remains cautious… consensus positioned for bad news on virus,” the bank said, adding that investors are also headed for a “choppy and higher summer prices.”
The number of fund managers that believe “long tech stocks” in the US is crowded is also high, at 74 percent.
Wealthy investors in the UAE and around the world had earlier said in a separate survey that they intend to do some changes in how they invest their money, as they fear that the coronavirus pandemic is going to affect their finances in the long term.
More than half (56 percent) of those polled by UBS said that they are worried about not having enough saved if there is another pandemic, while 58 percent are concerned about working longer to make up for retirement losses.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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