The return of inflation, rising interest rates, the energy crisis in Europe, and fears of a recession are drastically changing investor sentiment. A good example of this can be seen in the September results of the global survey that Bank of America conducts monthly among fund managers. 

The proportion of respondents (52%) who say they are underweight in stocks is the highest since 2001, while 62% are overweight in cash. The number of respondents expecting a recession reached 62%, the highest level since May 2020.

On a somewhat more positive note, 79% of respondents expect inflation to slow over the next twelve months, while 36% believe the Federal Reserve will stop raising interest rates in the second quarter of 2032.