Ukraine and China compete as top investor worry
2014-03-19 11:26:51
Ukraine or China? The two seem to take turns as the biggest worry of the day for markets at the moment.
In a monthly investor survey released Tuesday, Bank of America Merrill Lynch found that the share of investors who expect geopolitical instability to become a risk for financial markets stability shot up in March, to 81%.
Almost 30% of the 241 investors surveyed–who manage combined assets of $636 billion–pointed to political tensions in Ukraine as the source of the biggest tail risk for markets. In February, the country was off most investors’ maps, and only 12% voiced concerns over the region.
Sentiment towards China’s economy fell further in March from February, with 47% fund managers believing that China’s economy will weaken in the coming year. China growth expectations are at the lowest level since July 2013.
A similar survey by Barclays also found that some 84% of investors think China will fall short of its official 7.5% growth target in 2014.
Remember the taper tantrum? No, nor does anyone else, it seems. Fed policy jitters are so 2013.