Global Funds Fear ‘Summer of Shocks’ Despite Boom in Money Growth

Investors now think Brexit is a bigger ‘tail-risk’ to the world economy than a crisis in China

by Ambrose Evans-Pritchard

Global fund managers have almost no faith in the latest stock market rallies around the world and have begun to fear the worst from Brexit, putting aside near record sums of money in cash as they brace for a ‘summer of shocks’

Investors have already lost confidence in China’s economic rebound this year and are shunning British equities like the plague, fearing a financial crunch if Britain votes to leave the EU.

What is puzzling is that this mood of deep alarm conflicts with clear evidence of accelerating monetary growth worldwide, usually a harbinger of better times ahead.

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