Investor pessimism about US stocks hits a 30-year high – BofA survey

The latest survey conducted by the Bank of America (BofA) showed that investor sentiment has reached a record low over the past 30 years. 82% of market participants interviewed for the survey are planning to reduce investments in US equities, expecting further deterioration of the economic situation.

At the same time, despite negative expectations, asset allocation does not yet reflect this pessimism. According to BofA, the share of monetary assets in portfolios amounts to 4.8%, while at the peak of concerns this figure usually reaches 6%. Nevertheless, investors concerned about US trade policy and rising market volatility have significantly reduced the share of US stocks in their portfolios.

As Bloomberg notes, April saw a record decline of interest in US stocks among survey participants. The situation is aggravated by the fact that 42% of respondents expect a recession in the world's largest economy. At the same time, the S&P 500 index, which has lost 8.1% since the beginning of the year, continues to perform worse than European and Chinese indices.