- Feelings of the Fund Director The BOFA analysts, with a chief investment strategy, Michael Hartnett said that views of American stocks pushed “bulls” in the feelings, but they pointed to the speed and size of the smiles well for the market to move forward.
Money managers optimism Fade In the first days Trump 2.0. Director of the Monthly Fund of the Bank of America reconnaissance It revealed the feelings that were stuck in March, which led to the second worse decline in global growth expectations and the largest decrease in the allocation of American stocks since Bofa began to conduct the survey in 1994.
The respondents indicated that their sales boom helped fuel the last stock market revision While they stopped their money on the margin – Warren Buffett registry recorded 334 billion dollars Cashme.
However, the most venerable American investor gave a famous piece of advice In a message to Berkshire Hathaway Share in 1968: “Be afraid when others are greedy and greedy when others are afraid.” Indeed, while Bofa analysts led by the chief investment strategy Michael Hartnett said that the opinions of obfuscation about American stocks prompted the “bull collapsing” in the feelings, they pointed to the speed and size of the correction that preaches the good for the market to move forward.
However, there is no doubt that the respondents in the survey 171, who run approximately $ 425 billion of assets together, were. panic By President Donald Trump, for example, again Provisions of customs tariffs. In February, Safi expected 2 % of investors that the global economy would be the weakest over the next 12 months, which means that the vast majority of respondents were pessimistic at that time. This number has since increased to 44 %-the worst one month drowns the growth expectations regardless
Bofa, the Fund’s director, said, “The S&P 500,” said Bofa, the director of the Fund, has been associated with the performance of the S&P 500 index.
The team wrote when it was released during the second week of the month: “Parliament on global growth expectations is bad news for tumors.”
After Trump’s victory in November elections, the new administration hopes to give priority to tax cuts and cancel restrictions in a large crowd of shares. Instead, Trump appeared to use definitions not only as a bargaining drug tool To address the trade deficit of America, which led to the tremendous uncertainty about American trade policy.
In the BOFA poll, 55 % of the fund managers said that the recession caused by the trade war is the largest “tail risk” facing the market-most martyred factor since “Kofid’s return” in April 2020-follow-up due to high inflation rates in the Federal Reserve and Fears regarding impact From the government efficiency section of Elon Musk, also known as Dog.
Meanwhile, more than 70 % of the respondents said they expect a form of terrible “Recession“Or slowing growth and rise in inflation. However, none of the polls surveyed, currently, expects a real stagnation.
Investors get a reason for joy
It is important to note, too, that the morale of investors may better explain the reason for selling shares recently than indicating where the market is heading. In one month, the average monetary center of the fund managers of the polls jumped 60 basis points to 4.1 %. This represents the contradictory “Sele Selle” end of Bofa, or a measure indicating an opportunity to purchase low when selling other investors, and vice versa.
This signal was initially operated in December, when the cash customization of the respondents decreased to a 4 % lower Bofa. Since then, and Nasdak Composite and S&P 500 entered the correction areas by dropping 10 % or more before recovering slightly.
It is clear that managers decided to rotate American stocks, as a net of 23 % of investors suffer from weight loss, compared to a net 17 % of weight last month. The decrease of 40 points is the largest in the history of the survey, and 69 % of the respondents said that the topic “the subject”The exceptional United StatesOr American stocks that surpassed the rest of the world – reached their climax. Rising expectations Chinese economyAnd at the same time, it became the base.
However, the BOFA survey study indicated that investors still expect the Federal Reserve to achieve the so -called “soft landing” or low inflation without stimulating the recession, and it is believed that the central bank will reduce interest rates twice to three times this year.
On Friday, the S&P finished a week in green for the first time in one month. Investors have received more good news during the weekend, with Reports This indicates the so -called mutual definitions announced on April 2, which Trump has ordered economic officials to design to each American trading partner, will be relatively narrow in the range. The market chanted with the news, as the S&P 500 increased by 1.5 % as of the afternoon.
This story was originally shown on Fortune.com
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