N°1 worry

The latest BofA Global Fund Manager Survey illustrates the change in mood amongst professional fund managers. The risk of a systemic credit event is now considered by far the biggest tail risk for financial markets replacing inflation as the top worry. Hawkish central banks, geopolitics, recession risks and stock crash worries are left far behind. At ECP, we continue to view the current environment as one of a normalization of interest rates after years of central bankers largesse. While some unsustainable business models are being wiped out and excesses in terms of valuations are being corrected, to us this is nothing systemic at the current stage.