Investors record largest ever US equity sell-off

Investors have made a historic cut to their holdings in US stocks this March. A survey by Bank of America found that allocations dropped by 40 percentage points. This shift is mainly due to concerns over President Donald Trump's trade policies and the impact on the US economy. In February, investors were 17 percent overweight in US equities. By March, they turned net underweight at 23 percent. In contrast, interest in Eurozone stocks surged, reaching its highest level since July 2021. Bank of America analysts attribute this change to fears of stagflation, the ongoing trade conflict, and a decline in the belief that the US economy is uniquely strong. Trevor Greetham from Royal London Asset Management noted that the US market is overpriced and current policies are not encouraging. About 70 percent of investors believe the idea of "US exceptionalism" has reached its peak. This comes as US stocks have seen a significant drop since reaching record highs in February. The survey also indicated that global growth expectations dropped sharply, marking the second largest decline on record. Investors expressed negativity towards tech and energy stocks, while showing more optimism for utilities and banking sectors.