Taps Coogan – April 20th, 2022

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The following chart, from Bank of America via Acemaxx Analytics, shows that the lowest percentage of fund managers on record are expecting a stronger economy.

Source

The current reading reveals that the overwhelming majority of fund managers see the global economy slowing.

Perhaps the most interesting attribute of this data set is that the prior low was not made during the Global Financial Crisis but in August of 2006, roughly a year before the market and economy peaked in the lead into that crisis. After that 2006 low, sentiment actually rallied briefly as markets pushed higher.

Something roughly similar happened during the lead into the Dot-Com bubble with sentiment plunging lower in 1998 before rallying up right before the Dot-Com bubble popped. Of course, 1998 also saw the Russian default following the Asian Financial Crisis.

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