Daily Management Review

Survey: Investors no longer see the pandemic as a major threat to markets


For the first time since the pandemic, investors no longer see the coronavirus as a major threat to markets. Investment fund managers surveyed by Bank of America rather fear rising inflation and "hysteria" over tightening regulatory policies.

U.S. investors have ceased to consider the pandemic coronavirus as a major threat to stock markets, according to a survey conducted by Bank of America. Its results show CNBC.

The main "tail risk" (that is, an exceptional event that could cause significant damage), in their view, is now the rise in inflation. It is feared by 37% of investment fund managers surveyed by the bank. However, an overwhelming majority of investors (93%) said they expect inflation to accelerate over the next 12 months.

Slightly fewer respondents (35%) said that the main threat, in their view, is "hysteria" in the bond market due to a possible tightening of the US Federal Reserve's financial and monetary policy. 

The coronavirus - problems with vaccine distribution - was only ranked third. It was named as the main risk by only 15% of respondents, which is almost half as much as in February this year, writes CNBC. COVID-19 lost its top spot on the list of the most serious threats for the first time since the start of the epidemic, the channel said.

The third and fourth places in the list of the most dangerous risks were taken respectively by the stock market bubble and higher taxes or stricter regulation under the administration of the new US president Joe Biden.

Bank of America surveyed 220 investors who manage a total of $630 billion in assets, and the survey was conducted from March 5 to 11, 2021.

source: cnbc.com