Global Investors Dump U.S. Stocks at Record Pace According to Bank of America
Global investors have rapidly pulled out of U.S. equities at a record pace over the past two months, citing escalating trade tensions as the biggest threat to financial markets, according to Bank of America (BofA) Global Research’s latest fund manager survey.
BofA’s April survey, which polled 164 fund managers overseeing a combined $386 billion in assets, found that net exposure to U.S. stocks has plunged by 53 percentage points since February. That marks the sharpest drop on record.
Currently, investors are 36% net underweight on U.S. equities, the lowest sentiment reading in nearly two years.
The bearish trend isn’t slowing either—a record number of respondents said they plan to further reduce their U.S. stock exposure in the coming months.
Trade War Fears Dominate Investor Risk Radar
The driving force behind the selloff is growing concern that President Donald Trump’s aggressive tariff strategy could trigger a global recession.
Trump’s reciprocal tariff policies, announced earlier this month, have sent shockwaves through markets. Although the S&P 500 saw a brief rebound on Monday, the index remains down around 8% year-to-date.
In addition to equities, the U.S. dollar and Treasury bonds have also come under pressure, signaling broader investor unease about the economic outlook.
A Historic Shift in Market Sentiment
BofA’s research paints a stark picture of deteriorating confidence in the U.S. economy. The survey results highlight how international investors are seeking safety outside of the U.S. amid growing volatility and political risk.
With capital rotation accelerating and risk aversion setting in, the market’s next moves may hinge on whether trade negotiations can ease investor anxiety—or deepen it further.
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