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Date: 17-apr-2025
Photo by Oren Elbaz on Unsplash
Investor confidence is crumbling. A recent Bank of America Global Fund Manager Survey reveals that investor sentiment has plummeted to its lowest point in 30 years, as market participants brace for economic turbulence driven by mounting trade tensions and inflation risks.
According to the survey, over 90% of fund managers expect stagflation—a period marked by slowing economic growth, high inflation, and rising unemployment—within the next 12 months. This gloomy outlook comes amid aggressive tariff policies imposed by the U.S., which many fear could slow global trade and business investment.
Further compounding the issue, recent actions like the 10% across-the-board U.S. import tariff and the 145% duty on Chinese goods are sending shockwaves through equity and commodity markets, prompting major institutional investors to shift toward safe-haven assets like gold and U.S. treasuries.
"The trade war isn't just about tariffs anymore—it’s a shift in the entire global supply chain," one fund manager noted anonymously. Another added, “Markets are pricing in not just inflation, but a breakdown in geopolitical cooperation that threatens global investment.”
The broader financial markets have responded accordingly. Global stock indices have shown sharp volatility, and the U.S. 10-year Treasury yield has dropped as investors seek safety. Meanwhile, gold prices have surged past $3,300 per ounce, reaching historic highs.
This historic dip in investor confidence highlights the fragility of global financial sentiment. With the risk of stagflation looming and trade disruptions intensifying, markets may face a prolonged period of uncertainty. For now, the mood is clear: caution is in, and optimism is on hold.
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Date: 16-Apr-2025
The WTO slashes its 2025 trade growth forecast, warning that U.S. tariffs under President Trump could reverse global trade and spark economic decoupling.
Date: 17-Apr-2025
The WTO slashes its 2025 trade growth forecast, warning that U.S. tariffs under President Trump could reverse global trade and spark economic decoupling.
