Nearly half of fund managers surveyed by Bank of America Merrill Lynch expect global GDP to fall in 2019 and 55% say they're bearish on both the world's growth and inflation outlook next year.

Why it matters: That's causing many to increase their cash positions, cut back on allocation to stocks and strangely to increase their holdings of emerging market assets.

What it means: Emerging market stocks and bonds are typically thought of as more risky than developed market securities because emerging countries have less deep and less developed capital markets and are often more vulnerable to large swings in volatility.

  • In times of uncertainty, investors typically sell, not buy.

Yes, but: BAML strategists say that despite the overall wall of worry — the U.S.-China trade war tops the list of biggest tail risks cited by investors for the ninth straight month — EM was the most crowded trade for the first time in survey history. That's even more impressive considering shorting EM was the third most crowded trade just last month.

  • But since the third quarter of 2018, EM has not only outperformed developed market peers like the U.S. and Europe, it has been less volatile.

What they're saying: Julian Howard, head of multi-asset solutions at GAM, said on CNBC in August that the market may have reached the peak of the anti-EM trade.

Go deeper: Brazil's deadly dam collapse could shock emerging markets

Go deeper

Updated 58 mins ago - Politics & Policy

Supreme Court clears way for first federal execution since 2003

Lethal injection facility in San Quentin, California. Photo: California Department of Corrections and Rehabilitation via Getty Images

The Supreme Court ruled early Tuesday that federal executions can resume, reversing a lower court decision and paving the way for the first lethal injection since 2003 to take place at a federal prison in Indiana, AP reports.

The big picture: A lower court had delayed the execution, saying inmates had provided evidence the government's plan to carry out executions using lethal injections "poses an unconstitutionally significant risk of serious pain."

2 hours ago - Health

More Republicans say they're wearing masks

Data: Axios/Ipsos poll; Chart: Andrew Witherspoon/Axios

Nearly two-thirds of Americans — and a noticeably increasing number of Republicans — say they’re wearing a face mask whenever they leave the house, according to the latest installment of the Axios-Ipsos Coronavirus Index.

Why it matters: A weakening partisan divide over masks, and a broad-based increase in the number of people wearing them, would be a welcome development as most of the country tries to beat back a rapidly growing outbreak.

Buildings are getting tested for coronavirus, too

Illustration: Eniola Odetunde/Axios

Testing buildings — not just people — could be an important way to stop the spread of the coronavirus.

Why it matters: People won't feel safe returning to schools, offices, bars and restaurants unless they can be assured they won't be infected by coronavirus particles lingering in the air — or being pumped through the buildings' air ducts. One day, even office furniture lined with plants could be used to clean air in cubicles.