From Financial Modeling Prep: 2025-04-15 06:17:00

Investor confidence hits historic lows with BofA Global Fund Manager Survey showing the most bearish sentiment in 30 years. 82% expect global growth to weaken, 42% predict a recession, and 49% foresee a “hard landing”. Cash holdings spike, U.S. equities allocation drops 53 points, with investors 36% underweight.

Survey finds this to be the “5th most bearish FMS in 25 years,” reaching “peak fear”. Despite grim economic outlook, investors are hedging rather than exiting risk assets entirely. Loss of faith in U.S. exceptionalism noted, with bearish sentiment towards U.S. corporate profits and dollar at decade highs.

Investors shift towards defensive sectors: overweight bonds, utilities, consumer staples, and pharma; underweight cyclicals, industrials, and technology. “Long gold” trade overtakes “long Magnificent 7” tech trade as most crowded position, indicating increasing caution.

Monitoring tools like Ratios (TTM) and Economics Calendar can help track market shifts during bearish times. With sentiment at a three-decade low and markets bracing for turbulence, caution prevails. Whether this is a bottoming-out or the start of a deeper correction remains uncertain, but defensive positioning is evident.



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