Investors abandon American actions in “Bull Crash”: Bank of America

Investors Uber bullish feeling So that American actions have stopped in the last month.

The latest Global Fund Manager survey of Bank of America in 171 participants carried out in March showed the greatest monthly drop in the distribution of investors to American stocks during American equities, the allowance reduced by 40% per month. As Recently in DecemberThe US actions allowance allowance had been at a record level.

A team of strategists from Bank of America led by Michael Hartnett described this decision in the March survey as a “bull crash”, with the appetite of investors for American actions that fall in the middle of the 10% draw in the S&P 500 (^ GSPC) During the last month. The rotation went in cash, by investigation by Bank of America, and not to obligations.

The rapid nature of the correction of the S&P 500 could be considered a sign of purchase. But as the Hartnett team points out, the recent market movements are more an extinguished from Uber Bulnishness rather than an obvious catalyst for a counter-current trade. For example, the allowance of the Treasury investor portfolio increased from 3.5% to 4.1%, the largest increase of one month since December 2021. But cash levels remain much lower than 6% observed in October 2022 when the consensual call of Wall Street projected an incoming recession.

Hartnett wrote that current levels of feeling are far from being “levels near your eyes and purchase”.

And like Wall Street’s strategists have recently stressedPart of the reason right now may not be an obvious moment “buy the DIP” to what has sent actions in the first place.

A table of Bofa’s survey shows that 55% of respondents think that the greatest risk for the markets is that “trade war triggers the global recession”. This marked the highest conviction in risk since the pandemic heads the list in April 2020.

But despite a pop of around 3% in shares in the last two sessions, little has changed in the history of trade war or growth growth in last week.

Mike Wilson, director of chief investments at Morgan Stanley, told customers on Sunday that a “negotiable rally” is possible in the markets. But Wilson does not see a sustainable rally with new records “until the numerous vents of growth are reversed” or that the Fed takes up interest rate reductions.

The next major test for the markets is scheduled for Wednesday with the last political decision of the Federal Reserve. The markets largely expecting the central bank to hold stable interest rates, investors will focus on indices at the time the central bank could reduce rates again. The Fed President’s press conference Jerome Powell is scheduled for 2:30 p.m. on Wednesday.