Bank of America expects global stock markets to see a slow economic recovery in light of the risk of a second wave of Coronavirus infections.
According to Reuters, a survey of fund managers conducted by the bank concluded that investors are optimistic about stocks, especially risky assets.
Global stocks recovered by a massive 31 percent in less than two months from a March sell-off, to offset more than half of their losses, as investors bet that the activity The economist will recover very quickly once the isolation measures have been eased.
But signs of renewed infection with the Corona virus in some countries have undermined those hopes.
The Bank of America survey showed that a second wave of the pandemic is the biggest threat to markets for the second month in a row.
While the economic outlook continues to decline, the May survey showed that 75 percent of respondents believe the recovery will be U-shaped. Or W. Only ten percent of the 194 respondents expected a V-shaped recovery.
V-shaped recovery refers to a decline in growth followed by recovery with the same intensity, while recovery occurs in the form of a letter U When the recovery takes more than two quarters of a year, the W-shaped recovery indicates a double dip in growth.
Investor pessimism was more evident in liquidity levels, which rose to 5.7 percent, much higher than the 4 percent recorded in February and slightly lower than April. .
