Fund Managers Still Say Trade War Is Biggest Risk

In the BAML (Bank of America Merrill Lynch) October 2018 survey, while trade war concerns were still cited as the top concern among global fund managers, as they have been for six of the past eight months, the intensity of the concern dropped. About 35% of fund managers surveyed cited it as their top tail risk, which is lower than 43% and 57% of fund managers citing it a top risk in September and August, respectively. While the trade risk is still fresh and the recent trade escalations between the United States and China (FXI) have kept fund managers concerned about ongoing trade tensions, other risks have become more prominent.