BofA Survey: Trade War Fears Drive Historic Exodus from US Stocks
According to Bank of America’s latest monthly survey of fund managers, global investors have drastically cut their exposure to US equities at a historic pace over the past two months.
The survey revealed that investors are now a net 36% underweight US stocks – the most in nearly two years – representing a sharp 53 percentage point decline since February, the largest drop in BofA’s records.
The poll of 164 investors managing $386 billion identified trade war leading to global recession as the primary market risk. This concern follows President Donald Trump’s aggressive tariff announcements, which have triggered a selloff across US assets including stocks, the dollar, and Treasury bonds. Despite Monday’s rebound, the S&P 500 remains down about 8% year-to-date.
