Global fund managers pessimistic on earnings

Only a third of 200 investors surveyed think corporate profit will improve over the next 12 months

In what could spell trouble for the equity market, a global survey of fund managers conducted by Bank of America Merrill Lynch (BAML) shows a sharp deterioration in the corporate earnings outlook.
 
Done this month, it found only a third of the 200 investors surveyed think corporate profit will improve over the next 12 months. The reading is the lowest since November 2015, down eight percentage points since last month and 25 percentage points from January.
 
“Investors’ expectations of corporate profit have taken an ominous turn, a warning sign for equities over bonds, high yield over investment grade,