Waning optimism over global economic growth prospects and rising stagflation fears have prompted investors to seek shelter in investment hedges.
Earlier this month, the Bank of America’s (BofA) monthly survey of fund managers found that optimism about the international economy has slumped to an all-time low.
Of the respondents, 71 percent were pessimistic about global growth in the coming months, as risks of a recession have turned into the top “tail risk” for global financial markets, the survey revealed.  
Should the United States emulate the economy of the 1970s—a blend of stagnating economic growth and skyrocketing inflation—how will the financial markets respond to this type of environment?   
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