Bully sentiment in stocks that were cratered in a historically historical way as President Donald Trump rattles the market as he sparked a random tariff and concerns about economic growth, according to Wall Street’s most widely-running investor survey. This month’s Bank of America Global Fund Manager Survey saw the biggest drawback in overall investor sentiment since March 2020. The result was what investment strategist Michael Hartnett considered as a “bullock conflict.” This month’s sharp decline is the seventh largest in the last 24 years, bringing the overall emotional scale to a seven-month low. The Sentiment Index consists of three components: stock allocation, cash holdings and economic growth expectations. March recorded the biggest decline in investor exposure to US stocks among major investors. Meanwhile, investors replenished cash with clips that have not been seen since the sale of the pandemic-inducing market in March 2020. The sour sentiment of the measure means “bad stock news,” as the poll’s global growth outlook has historically correlated with the S&P 500 performance, Hartnett said. Taking a paradoxical stand, Hartnett said the rapid decline in emotions could indicate that most recent pullbacks have ended. However, he added that positioning in the investigation is at a level “close to nowhere” that reflects an “extreme bear” environment or an environment in which investors have their eyes closed. A March survey of Bank of America led investors to wonder what’s next for our stock after they catalyzed a rapid decline from an all-time high for fear of tariffs and cooling growth. Tuesday’s S&P 500 refers to a drop of at least 10% from the recent high.
