U.S. stock allocations hit historic decline, BofA reports

In March, investment in U.S. stocks saw the largest decline ever recorded. Concerns about stagflation, trade wars, and the decline of U.S. economic dominance contributed to this dramatic shift in investor sentiment. This information comes from a survey by BofA Global Research. The survey revealed that global investors increased their cash holdings to 4.1%, up from 3.5%. This change follows a "sell signal" that was issued back in December. BofA mentioned that the speed at which investor sentiment has declined suggests that we may be at the end of an equity correction. Expectations for global growth also dropped significantly, marking the second largest decline on record. Meanwhile, investment in euro zone stocks reached its highest level since July 2021. Among various sectors, banks have become the preferred choice for investors. The survey involved 171 participants who collectively manage $426 billion in assets.