Also, a net 72% among survey respondents expect global profits to decline over the next month, down from a net 79% in July, which was the highest mark since October 2008.
Inflation remaining high tops the list as the biggest tail risk for managers at 39% (up from 33% in July), followed by a global recession at 24% (equal to July), hawkish central bank increases at 16% (down from 17% in July), systemic credit events at 8% (10% in July), a COVID-19 resurgence at 4% (equal to July), and the Russia-Ukraine conflict at 3% (down from 7% in July).
When asked how they see the global economy trending over the next 12 months, 90% said they expect stagflation (below-trend growth and above-trend inflation), the same response as in July, the highest percentage in the history of the survey.
Also, investors' cash levels came down to 5.7% in August from 6.1% in July, well above the long-term average of 4.8%.
Only 5% of fund managers expect a global economic boom (above-trend growth and inflation) over the next 12 months, equal to July.
In addition, a net 47% of respondents said they are currently taking lower-than-normal risk levels, down from a net 57% in July, which had been the highest level recorded in the history of the survey.
Asset allocation to U.S. equities increased to a net 10% overweight in August's survey from 5% underweight in July. The allocation had been as high as a net 55% overweight as recently as January following a peak of a net 62% overweight in April 2021.
Managers were surveyed between Aug. 5 and Aug. 11.