The bank’s survey took place before the publication of Friday’s CPI number rocked markets. In other words, soaring prices could possibly become a bigger concern for the fund managers polled.
Inflation hit a 41-year high of 8.6% in May, which triggered a brutal sell-off that ended the S&P 500’s brief bear market rally.
Hawkish central banks are also putting more pressure on investors, according to Bank of America. 32% of the fund managers that the bank surveyed see rising interest rates as the biggest threat facing markets right now.
The Federal Reserve meets Wednesday to discuss hiking interest rates – with analysts from Barclays, Goldman Sachs, and Jefferies expecting rates to rise by 75 basis points for the first time since 1994.
“[There will be] no big low in stocks before big high in yields and inflation,” Hartnett and Jung said. “The