 "inflation, shopping, economy")
Hawkish central banks, recession risks from inflation, and the Russia-Ukraine conflict are the biggest ‘tail risks’ for equity markets, reveals the May BofA Global Fund Manager Survey (FMS). Meanwhile, Covid-19 — which had ruled the charts as the biggest risk between 2020 and 2021 — has slipped down the pecking order, with only a net 1 per cent of respondents seeing it as a threat.
Over the past decades, over a dozen tail risks have spooked investors, observes FMS. “The dominant concerns of investors since 2011 have been Eurozone debt and potential breakdown, Chinese growth, populism, quantitative tightening and trade wars, global coronavirus, now inflation/bond tantrum and central bank rate hikes,” says BofA in a note.
