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In a chart, for the primary time in over a yr, COVID-19 isn't the largest threat for buyers, based on Financial institution of America

"It's over."

That was the roundup of a monthly survey of global fund managers by Bank of America that could provide the latest evidence that investors have at least gone mentally around the corner of the COVID-19 pandemic.

The graph shows what investors view as the greatest “end-of-line risks” or the relatively unlikely events that could lead to oversized losses or gains. It is the first time in more than a year that COVID-19 is not at the top of this list.

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“A year ago, on March 11th, COVID-19 was labeled a global pandemic. COVID-19 has been labeled the (# 1) investor tail risk for the past 12 months. However, this month, for the first time since (February 2020), it's not the biggest risk, ”said a team at Bank of America, led by Michael Hartnett, chief investment strategist, in a statement to clients.

COVID-19 was replaced by inflation, which 37% of respondents cited as a higher risk in the fund manager's survey in March, and "rejuvenating tantrums," which 35% saw as a greater risk, Hartnett said.

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Over the past few weeks, the chances for investors of a “tantrum” like 2013 have increased when the prospect of rising interest rates rocked the broader market. A sudden spike in interest rates recently has also put pressure on growth stocks, adding to concerns over spike in inflation amid trillions of dollars' worth of pandemic stimulus aid.

Read: The Fed should “rearrange” its playbook and buy more government bonds and fewer mortgage bonds, the analysts urge

However, the upside is in abundance as stocks hit new highs and COVID-19 vaccines roll out in the US. The poll shows that a net 48% of respondents see a “V-shaped” recovery, a rapid and sustained economic recovery that rose significantly by just 10% in May 2020.

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89% of managers surveyed see global corporate earnings improve over the next year, beating the highs of February 2002 and December 2009.

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Expectations for higher returns have fallen:

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Higher growth and higher inflation are dominant expectations:

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Those investors who believe a bubble is brewing are in the firm minority:

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And this is where investors are leaning on now: cyclical stocks geared towards post-pandemic recovery. Managers have taken technology exposure to its lowest level since January 2009. Bank of America noted:

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And here's a look at our situation – a year ago, when the pandemic spread and investors played defense:

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Read: Americans Ready to Put $ 40 Billion Into Bitcoin and the Stock Market When Stimulus Checks Arrive: Poll

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