Bank of America’s latest poll reveals that investor sentiment has plunged to its lowest level in three decades, with 82% of surveyed fund managers anticipating a weakening economic and market environment.
That pessimism has driven a rapid reallocation of assets. In just two months, fund managers swung from a 17% overweight stance on US equities in February to a 36% underweight position in April — the largest two-month change ever recorded in the survey’s history.
Despite the dramatic shift away from stocks, BofA strategists point out that portfolios do not yet reflect “peak fear.” Cash allocations remain at 4.8%, which is below the roughly 6% cash weight typically associated with extreme bearish sentiment.
The survey gathered responses from 164 participants who collectively manage $386 billion in assets and was conducted from April 4–10.