Reuters reports that Bank of America's September survey showed that barely a tenth of respondents in a monthly fund manager survey expect a stronger global economy in the coming months, marking the lowest proportion since last April's initial COVID-19 panic.

Economic growth expectations are now at a net 13%, the lowest since April 2020 and markedly down from a 91% peak in March this year. 

Despite the growing caution on the macroeconomic outlook, positioning in asset markets remains overwhelmingly bullish.

Equity market protection designed to shield portfolios against a sharp drop in asset values was at the lowest levels since January 2008.

Nearly half of BofA's clients, with $840 billion in assets under management, said they have removed protection against a sharp fall in equity prices over the next three months, the lowest figure since January 2018.

Moreover, broader equity market positioning remains firmly bullish with net global equity allocations at 50%, far above a 20-year average of 29%, the survey said.