Financial Markets Brace for Stagflation as Global Growth Optimism Sinks

Flags are seen outside the New York Stock Exchange in New York City, where markets roiled after Russia continues to attack Ukraine, in New York, on Feb. 24, 2022. Caitlin Ochs/Reuters

Waning optimism over global economic growth prospects and rising stagflation fears are prompting investors to seek shelter in investment hedges, market strategists say.

Earlier this month, Bank of America’s (BofA) monthly survey of fund managers found that optimism about the international economy has slumped to an all-time low.