Inflation, not Covid, is now the biggest 'tail risk' for markets, Bank of America survey says

Traders working at the New York Stock Exchange (NYSE), today, Wednesday, April 21, 2021.
Source: NYSE

Despite assurances from the Federal Reserve that the current spate of price increases is temporary, professional investors see inflation as the biggest threat to their portfolios, according to the closely watched Bank of America Global Fund Manager Survey.

A record 69% of respondents to the monthly reading see above-trend growth and inflation as the most likely scenario ahead.

What's more, inflation is seen by 35% as the biggest "tail risk," or unlikely event that could cause substantial damage.