The Chart of the Week presents the results of a question from the Fund Manager Survey (FMS), a regular survey conducted by Bank of America that measures professional investment managers’ views on the economy, financial markets, and investment risks. The survey asked investors what they considered the biggest tail risk facing financial markets. Tail risk refers to the possibility of a rare but severe event that could result in significant market losses.
According to the July survey, 45% of fund managers identified an AI bubble as the biggest tail risk, a sharp increase from approximately 12% in May. The second most common concern was a second wave of inflation, cited by 26% of respondents, down from around 40% in May.
While tail risk typically refers to low-probability, high-impact events, it is debatable whether an AI bubble or renewed inflation truly fits that definition. Nevertheless, the survey clearly shows that investors’ primary concern has shifted away from inflation and toward the potential risks associated with the rapid growth of AI-related investments.
Chart of the Week – July 27, 2026
The Chart of the Week presents the results of a question from the Fund Manager Survey (FMS), a regular survey conducted by Bank of America that measures professional investment managers’ views on the economy, financial markets, and investment risks. The survey asked investors what they considered the biggest tail risk facing financial markets. Tail risk refers to the possibility of a rare but severe event that could result in significant market losses.
According to the July survey, 45% of fund managers identified an AI bubble as the biggest tail risk, a sharp increase from approximately 12% in May. The second most common concern was a second wave of inflation, cited by 26% of respondents, down from around 40% in May.
While tail risk typically refers to low-probability, high-impact events, it is debatable whether an AI bubble or renewed inflation truly fits that definition. Nevertheless, the survey clearly shows that investors’ primary concern has shifted away from inflation and toward the potential risks associated with the rapid growth of AI-related investments.
Recent Post