Growing fears of stagflation pushed fund managers' cash levels to a new high and risk appetite close to record lows, though investors continue to see value in equities, Merrill Lynch's (NYSE:MER) (OOTC:MERIZ) survey of fund managers for March found.
The survey found asset allocators' cash positions rose to a record high for the survey in March with a net 42 pct reporting they are overweight cash, up from February's then high of 41 pct.
Meanwhile, the survey's FMS composite indicator for risk and liquidity stayed at 31, well down on the long-term average of 42.
These findings reflect increased fears of stagflation, with more than three quarters of the survey's panel believing the global economy is entering a year when growth is below trend while inflation is above trend. In February, two thirds had taken that view.
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