Money Managers Lose Faith in Global Growth Expectations

“Faith in global growth has plunged in recent months, with a sharp drop in the number of fund managers who believe the world’s economy will expand in the next year.

The results, contained in the latest Bank of America Merrill Lynch Fund Manager Survey, also show less confidence among institutional investors in corporate profits.

The survey found just 41 percent of managers believing the global economy will expand, while 31 percent see a pullback and the remaining 28 percent either unsure or seeing little growth. That’s a huge drop from earlier this year.

Though some 69 percent of companies in the Standard & Poor’s 500 have posted better-than-expected earnings from the first quarter, the stock market has sputtered and investor confidence appears to have waned significantly.”

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