Bank of America Survey: Global Investors Sell U.S. Stocks at Record Pace

ChainCatcher news, Bank of America Global Research said on Tuesday that global investors have dramatically reduced their holdings of U.S. stocks to a record extent over the past two months, believing that the trade war triggering a global economic recession is the biggest risk facing the market.

In a monthly survey of fund managers conducted by Bank of America, the proportion of respondents who net reduced their allocation to U.S. stocks was 36%, the highest level in nearly two years. Over the course of two months, the allocation to U.S. stocks fell by 53 percentage points, marking the largest two-month decline on record. This trend appears set to continue, as a record number of respondents also indicated they plan to cut their allocation to the U.S. stock market. Trump's aggressive tariff plan has triggered a sell-off of U.S. assets, including stocks, the dollar, and U.S. Treasuries. The stock market rebounded on Monday, but the S&P 500 index is still down about 8% year-to-date. Bank of America surveyed 164 investors managing $386 billion in assets.