By Steve Goldstein
Cash levels are rising as fund managers assign 49% chance to a hard landing
Fund managers have quickly become pessimistic on U.S. stocks after the introduction of Trump administration tariffs.
According to Bank of America’s monthly fund manager survey, the percent who are underweight U.S. stocks is now 36% in April, after being 17% overweight in February.
The survey also found that the level of sentiment is the fifth-lowest on record as cash held by fund managers surged by the most in two months since COVID, to 4.8%.
Growth expectations globally have slumped to a record 30-year low, as 49% say hard landing is now the most likely outcome for the global economy in the next 12 months.
The fund managers report increased allocations to bonds, cash and defensive stock-market sectors and reduced allocations to industrials, stocks and the eurozone.
The poll was taken between April 4 – two days after so-called Liberation Day – and April 10, a day after President Donald Trump paused reciprocal tariffs for all countries besides China.
Investors – and Bank of America itself – say the fund manager survey can be used as a source for contrarian ideas on how to invest.
The S&P 500 SPX has recovered from the introduction of reciprocal tariffs, bouncing 11% from its early April lows. Stock-market futures (ES00) pointed to a cautious start on Tuesday.
-Steve Goldstein
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(END) Dow Jones Newswires
04-15-25 1035ET
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