While only nine percent of investors expect a global economic recession in 2019, over half (53 percent) expect global growth to weaken over the next 12 months, which is the worst global economy outlook since October 2008, according to the BofA Merrill Lynch December Fund Manager Survey.

Inflation expectation have declined greatly by 33ppt to just net 37 percent expecting global CPI to rise over the next year, which is a reversal from the recent peak of net 82 percent in April.

In terms of asset allocation, this month’s survey found the largest one month rotation into bonds, with its allocation rising 23ppt to net 35 p...