Fund managers now fear the Fed more than inflation - BofA survey

Central banks are now the biggest concern among fund managers, according to the December BofA survey. Hawkish central bank rate hikes is now the biggest tail risk at 42%, taking the top spot from inflation, which is down to 22% this month. It's the first time central bank hikes have been the biggest worry since May 2018. A COVID-19 resurgence is in the third spot at 15%, moving ahead of asset bubbles, now in fourth at 8%. Rounding out the list is geopolitics at 6%, China credit contagion at 4% and an emerging market currency crisis at 1%. Of the 371 participants with $1.1T of assets under management, a slight majority of 55% still see inflation as transitory. More than a third, 36%, say it's permanent. They rotated cash into healthcare and cut exposure to tech to a 12-month low. "Allocation to technology declined 10ppt MoM to net 21% overweight,"