BofA survey suggests stocks will fall in Europe

According to a survey conducted by Bank of America among 150 European fund managers, 70 percent of respondents expect a downward movement in European stocks, while 58 percent expect a recession in the next 12 months. According to a survey conducted by Bank of America (BofA) among European fund managers, 70 percent of respondents think that European stocks will move downward in the coming months due to the expectation of monetary tightening. The survey, which covers the period between April 7-13, includes 150 fund managers who manage a total of $283 billion in securities. The strategists, led by Andreas Bruckner, believe that persistent inflation and the subsequent weak macro data will cause a correction. While 75 percent of respondents expect growth to weaken in Europe in the next 12 months, 58 percent predict a recession. On the other hand, 58 percent of respondents noted that the macroeconomic situation caused by worsening credit conditions will be the dominant issue and that they expect a demand collapse. Participants emphasized that this situation could lead to outcomes such as increased recession risks, weakening inflation, peaks in central bank hawkishness, and a decline in bond yields. 57 percent of fund managers stated that they have a negative view of stocks whose success is indexed to the economy compared to more conservative stocks due to slowing growth, and that they expect high-quality stocks to perform better than low-quality ones. According to participants, technology stocks are still the most popular stocks, while the real estate sector stands out as the least popular sector.