Investor optimism over the global economic recovery has been dented as the tail risk associated with the US economy has escalated.
That is according to the BofA Merrill Lynch Fund Manager Survey for October.
Sentiment towards Europe has improved, however, the study shows.
The survey, taken from 4-10 October, showed that the number of investors believing the global economy will strengthen had fallen to 54% from a 69% in September, albeit still at historically strong levels.
71% expect the economic growth to remain below trend in the coming 12 months, up from 61% a month ago.
Concern about US fiscal tightening is now the number one tail risk for 24% of respondents, up from only 6% in September.
Expectations for a recovery in corporate profits have also fallen.
Only 28% said they expected corporate profits worldwide would improve in the following 12 months.
That was down on the 41% recorded in September.
Nearly one in five believe that corporate profit margins will decrease in the coming year, up from a 11% a month ago.
There is rising conviction about European equities.
Europe has been able to avoid the downward shift in global sentiment with equity allocations reaching a six-year high.
46% of asset allocators favour European equities, up from 36% in September.
It represents the highest reading since 2007.