Investor Sentiment Plummets to Seven-Month Low Amid Tariff Concerns
A recent survey by Bank of America has found a significant decline in bullish sentiment among investors, with the largest pullback since March 2020. The drop in investor confidence is largely attributed to President Donald Trump’s haphazard rollout of tariffs, which have raised concerns about economic growth.
The survey’s results show that investors are now more cautious than ever, with the overall sentiment measure reaching a seven-month low. This decline is particularly concerning given the historical correlation between the global growth outlook and the S&P 500 performance. In other words, souring sentiment on this measure could signal “bad news for stocks.”
Despite this, some experts argue that the rapid drop in sentiment may be an opportunity to buy. Michael Hartnett, an investment strategist at Bank of America, believes that the recent pullback is nearing its end. However, he cautions that investors should not become too optimistic, as positioning is still nowhere near levels that reflect an “extreme bear” environment.
The S&P 500 has been fighting to remain out of correction territory, which would require a drop of at least 10% from its recent high. As investors look ahead to what’s next for US stocks, the survey’s results provide valuable insight into the market’s concerns and potential opportunities.
Source: https://www.cnbc.com/2025/03/18/this-widely-followed-investor-survey-showed-a-crash-in-bullish-sentiment-for-stocks.html