Warmongering central banks, inflation-related recession risks and the Russia-Ukraine conflict are the biggest “tail risks” to stock markets, the May BofA Global Fund Manager Survey (FMS) finds. Meanwhile, Covid-19 – which had dominated the charts as the biggest risk between 2020 and 2021 – has slipped down the pecking order, with just a net 1% of respondents considering it a threat.

Over the past few decades, more than a dozen tail risks have spooked investors, FMS observes. “Investors’ main concerns since 2011 have been Eurozone debt and its potential collapse, Chinese growth, populism, quantitative tightening and trade wars, global coronavirus, now inflation/bond crisis and central bank rate hikes,” BofA said in a note.

Although concerns dominated the list, only a few threatened to pose a risk to the stability of financial markets. However, the latest survey reveals that investors are very worried.

“Our FMS Financial Market Stability Risk Indicator is currently at 7.5 – an all-time high. perceived for the stability of financial markets also indicates a further decline in share prices,” the note adds.

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