Wall Street Rebuffs Soft-Landing Dream as 92% Bet on Stagflation

Li sees a US growth slowdown, earnings downgrades and elevated price pressures, justifying the firm’s underweights in developed-market equities and bonds, though it’s ready to put some cash back into corporate credit. Her stance is backed by investors at Bank of America, who overwhelmingly see stagflation on the horizon. The firm’s latest survey shows they’re historically underweight equities — with tech-share positioning the lowest since 2006 — and overweight cash.