Asset Management

Global fund managers fear stagflation

Stagflationary bond crash cited as biggest 'tail risk', according to Bank of America Merrill Lynch survey

Global fund managers fear stagflation
Photo: iStockPhoto

Inflation expectations climbed to their highest since 2004 among global fund managers, a Bank of America Merrill Lynch survey conducted after the US presidential election found.

A net 85% of fund managers said they expected the global consumer price index to climb, up from 70% in October. Nearly half of fund managers believe that investors will continue rotating into inflationary sectors well in 2017.

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