off-the-wire

"Bull crash" drives biggest ever drop in US equity allocation - BofA

Kitco Media
By Reuters
Published:
Updated:
Reuters
"Bull crash" drives biggest ever drop in US equity allocation - BofA teaser image

MILAN, March 18 (Reuters) - Allocation to U.S. stocks saw the biggest drop ever in March with concerns over stagflation, trade wars and end of U.S. exceptionalism driving a "bull crash" in sentiment, a survey of investors from BofA Global Research showed on Tuesday.

Global investors raised their allocation to cash to 4.1% from 3.5%, ending a "sell signal" triggered in December, with the speed of the downturn in sentiment being "consistent with end of equity correction", BofA said.

Global growth expectations saw the second biggest drop on record, but, at the same time, allocation to euro zone stocks was the highest since July 2021, with banks becoming the world's favourite sector, according to the survey.

The survey included 171 participants with $426 billion of assets under management.

Reporting by Danilo Masoni; Editing by Amanda Cooper

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