Fund managers have never turned so pessimistic this quickly

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Dow Jones NewsApr 15, 11:23 AM UTC
MW Fund managers have never turned so pessimistic this quickly on U.S. stocks, a survey finds

By Steve Goldstein

 

Cash levels are rising as fund managers assign 49% chance to a hard landing

 

Fund managers have quickly become pessimistic on U.S. stocks after the introduction of Trump administration tariffs.

 

According to screenshots of Bank of America's fund manager survey shared on the social media service X, the percent who are underweight U.S. stocks is now 36% in April, after being 17% overweight in February.

 

The bank declined to send the report to MarketWatch because it's reporting earnings today.

 

The survey also found that the level of sentiment is the fifth-lowest on record as cash held by fund managers surged by the most in two months since COVID, to 4.8%.

 

Growth expectations globally have slumped to a record 30-year low, as 49% say hard landing is now the most likely outcome for the global economy in the next 12 months.

 

The poll was taken between April 4 - two days after so-called Liberation Day - and April 10, a day after President Donald Trump paused reciprocal tariffs for all countries besides China.

 

Investors - and Bank of America itself - say the fund manager survey can be used as a source for contrarian ideas on how to invest.

 

The S&P 500 SPX has recovered from the introduction of reciprocal tariffs, bouncing 11% from its early April lows. Stock-market futures (ES00) pointed to a cautious start on Tuesday.

 

-Steve Goldstein

 

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(END) Dow Jones Newswires

 

04-15-25 0723ET

 
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