Bank of America Survey: Global Investors Sell U.S. Stocks at Record Pace
Jinse reported that Bank of America Global Research stated on Tuesday that global investors have significantly reduced their holdings of U.S. stocks at a record pace over the past two months. They consider the trade war, which could trigger a global economic recession, the biggest risk facing the market. In Bank of America's monthly survey of fund managers, 36% of respondents reported a net reduction in U.S. stock allocation, the highest level in nearly two years. Within two months, the allocation to U.S. stocks dropped by 53 percentage points, marking the largest two-month decline on record.
This trend seems likely to continue, as a record number of respondents also indicated that they plan to cut back their U.S. equity allocations. President Trump's aggressive tariff plans have led to a sell-off in U.S. assets, including stocks, the dollar, and U.S. Treasury bonds. The stock market rebounded on Monday, but the S&P 500 index is still down about 8% year-to-date. Bank of America surveyed 164 investors managing $386 billion in assets.
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