The flight from risk assets | 21 7月 2022

21 7月 2022, USD/JPY

USDJPY trading plan:

Investors slashed their exposure to risk assets to levels not seen even during the global financial crisis in a sign of full capitulation amid a “dire” economic outlook, according to Bank of America monthly fund manager survey. Investor allocation to stocks plunged to levels last seen in October 2008 while exposure to cash surged to the highest since 2001, according to the survey. A net 58% of fund managers said they’re taking lower than normal risks, a record that surpassed the survey’s global financial crisis levels. The survey’s findings highlight this year’s flight from risk assets, which has sent the S&P 500 Index into a bear market and led European stocks to their worst six-month drop since 2008. Although optimism is brewing again that US inflation could be nearing a peak, sentiment remains subdued with risks around a potential economic contraction remaining high. A looming energy crisis in Europe has also added to the uncertainty.

Investment idea: sell 138.55 and take profit 137.90.

David Johnson
Analyst of «FreshForex» company
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