Fund managers have become increasingly pessimistic about US stocks in a short span of time, according to a survey by Bank of America. The percentage of investors who are overweighting the US market has fallen from 17% in February to just 36% in April.
The survey also found that cash levels are rising as fund managers are assigning a 49% chance to a hard landing for the US economy. This is a significant increase from previous months, where the probability of a recession was lower.
The shift in sentiment among fund managers comes after the introduction of Trump administration tariffs, which have had a negative impact on global trade and economic growth. The rising pessimism among investors is a sign that they are expecting a tougher economic outlook for the US in the near future.
Source: https://www.marketwatch.com/story/fund-managers-have-never-turned-so-pessimistic-this-quickly-on-u-s-stocks-a-survey-finds-807e3119