Bank of America survey: Geopolitical conflict becomes the biggest tail risk, and expectations of interest rate cuts have significantly cooled down

Bank of America's global fund manager survey in March showed that geopolitical crisis and inflation rebound have replaced the "AI foam" and become the "biggest tail risk" in the eyes of fund managers. The Middle East conflict and soaring oil prices have weakened investor optimism, leading to the fastest increase in cash holdings since March 2020. The rise in inflation expectations has suppressed market bets on interest rate cuts, with only 17% of net asset managers expecting the Federal Reserve to cut rates, a significant decrease from 46% in February.