An unusually high level of nervousness is beginning to prevail in the markets. Investors are worried about the economic growth outlook the most since 2008, when the world was hit by the financial and subsequent economic crisis.
With at least one trillion dollars in assets under management, most investors expect 2022 to be a bearish year for financial markets. Already, this year’s global asset allocations are at their lowest level since May 2020. This is according to a Bank of America survey.
However, the uneasy mood of investors is also confirmed by data on cash holdings. It has increased by six percent year-on-year this year. Hedge fund exposure to equities, on the other hand, is the lowest in almost two years.
According to analysts at Bank of America, long positions are now most open in commodity investments, especially oil. Right behind them are investments in technology stocks and investments in assets based on ESG principles. Nearly half of investors believe oil will be this year’s most profitable asset. Almost 70 percent of respondents said the European economy will weaken this year, while only 12 percent believe it will grow.