Investors cut China GDP expectations to lowest level in four years over coronavirus

The coronavirus's potential impact is noted in Bank of America's (BoA) latest fund manager survey, with investors cutting their China GDP expectations to the lowest level in four years.

A net 18 per cent of fund managers now have positive growth expectations; down from 36 per cent in January and the first time since October that global growth expectations have fallen.

Worry

It’s not that investors are bearish – after all, the average cash balance has fallen to 4 per cent, the lowest level in almost seven years – but contrarians will be cheered by the fact that sentiment has become less exuberant.

Expensive markets can become more expensive; the time to worry is when everyone is pounding the table for stocks. That's not the case just yet, so stay "irrationally bullish", says BoA's Michael Hartnett.