Bank of America (NYSE:), traditional Fund Manager Surveys (FMS), has produced some of the most bearish recent results with global growth optimism at an all time low (-71%) and most forecasts for stagflation since August 2008.

Investors expect seven rate hikes by the Fed in April, with the tightening cycle anticipated to be over by the end of 2023.

There is also a high risk that monetary policy mistakes could occur (83%). The FMS also showed that surveyed investors see the Fed “put” at 3637 on .

“April FMS is bearish as fear of fast & furious Fed sends global growth optimism to all-time low, keeps Wall St stability risks high; though not as bearish as war-shocked March FMS, sentiment is poor (BofA Bull & Bear Indicator back down to 2.0 “buy signal”); we remain in “sell-the-rally” camp as Profit-Policy set-up means Jan/Feb sell-off was appetizer, not main course of ’22,” Bank of America’s Chief Investment Strategist Michael Hartnett wrote.

Investors identified 4 major tail risks currently: 1) Recession, 2) Hawkish central bank, 3) Inflation and 4) Russia/Ukraine War.

The survey revealed other trades as well, including long oil/commodities which is currently the most congested with 38% allocated to commodities.

“Modest April rotation to banks & tech, but biggest “longs” are cash, commodities, resources, healthcare, biggest “shorts” are bonds & cyclicals such as industrials & discretionary,” Hartnett added.

Hartnett’s fellow BofA strategist Jill Carey Hall reflected on last week’s flows when the S&P 500 closed 1.3% lower. Overall, the bank’s clients were net sellers of US stocks ($2.8 billion).

“All three client groups were sellers, led by hedge funds (sixth consecutive week of sales). Institutional clients were net sellers for a second week, and retail clients were net sellers after two weeks of buying (and for only the second time YTD),” Carey Hall said in a separate memo to clients.

Large caps were being sold and small caps purchased by clients. Corporate clients moderately increased their stock buybacks activities.

By Senad Karaahmetovic