Most investors are braced for a correction, but lower-than-expected inflation would come as a real shock, according to a survey Merrill Lynch conducted during the first week of June.
"I think that everyone came into this correction kind of almost expecting a correction," Global Emerging Markets Strategist Michael Hartnett said, commenting on investor's reactions in the survey on CNBC's "Squawk on Street." "You had a fabulous run in all equity markets from the March lows."