Global Growth Concerns Drive Investors to Cash, Out of Stocks in August

In August, investor confidence waned as global growth expectations reached an eight-month low, prompting a shift towards cash and away from stocks, according to a Bank of America fund manager survey. This change in sentiment was linked to disappointing U.S. job numbers and instability in the Japanese Yen. Despite this, a majority of investors still anticipate a gradual economic slowdown rather than a sharp downturn, particularly with expectations of future interest rate cuts. This outlook was reflected in a notable decrease in allocations to Japanese equities.