Growth expectations decreased when global fund managers flow from the shares of the United States

• Feelings of the Fund Director The BOFA analysts, with a chief investment strategy, Michael Hartnett said that views of American stocks pushed “bulls” in the feelings, but they pointed to the speed and size of the smiles well for the market to move forward.

Money managers optimism quickly faded in the first days of Trump 2.0. Director of the Monthly Fund of the Bank of America reconnaissance It revealed the feelings that were stuck in March, which led to the second worse decline in global growth expectations and the largest decrease in the allocation of American stocks since Bofa began to conduct the survey in 1994.

The respondents indicated that their sale boom helped fuel the last securities market correction as they stopped their money on the margin – where he recorded a cash pile of $ 334 billion.

However, the most evident investor in America gave a famous advice in a letter to the shareholders of Hathaway in 1968: “Be afraid when others are greedy and greedy when others are afraid.” Indeed, while Bofa analysts led by the chief investment strategy Michael Hartnett said that the opinions of obfuscation about American stocks prompted the “bull collapsing” in the feelings, they pointed to the speed and size of the correction that preaches the good for the market to move forward.

However, there is no doubt that the respondents in the survey 171, who manage approximately $ 425 billion of assets combined, have learned about the threats of President Donald Trump, outside the threats. In February, Safi expected 2 % of investors that the global economy would be the weakest over the next 12 months, which means that the vast majority of respondents were pessimistic at that time. This number has since increased to 44 %-the worst one month drowns the growth expectations regardless

Bofa, the Fund’s director, said, “The S&P 500,” said Bofa, the director of the Fund, has been associated with the performance of the S&P 500 index.

The team wrote when it was released during the second week of the month: “Parliament on global growth expectations is bad news for tumors.”

After Trump’s victory in November elections, the new administration hopes to give priority to tax cuts and cancel restrictions in a large crowd of shares. Instead, Trump has appeared to use a customs tariff not only as a bargaining drug but also as a tool for treating the trade deficit of America, which leads to tremendous uncertainty about American trade policy.

In the BOFA poll, 55 % of the fund managers said that the stagnation caused by the trade war is the largest “tail risk” facing the market-most martyred factor since “Kofid’s return” in April 2020-following up due to high rates of inflation by the Federal Reserve and his concerns about government efficiency management in Elon Musk, also known as work.

Meanwhile, more than 70 % of the respondents said they expect a form of dreaded “stagnation” or slowing growth and high inflation. However, none of the managers of the polls currently expecting a real recession.

Investors get a reason for joy

It is important to note, too, that the morale of investors may better explain the reason for selling shares recently than indicating where the market is heading. In one month, the average monetary center of the fund managers of the polls jumped 60 basis points to 4.1 %. This represents the contradictory “Sele Selle” end of Bofa, or a measure indicating an opportunity to purchase low when selling other investors, and vice versa.

This signal was initially operated in December, when the cash customization of the respondents decreased to a 4 % lower Bofa. Since then, Nasdaq Composite and S&P 500 have entered the drop -down area by dropping 10 % or more before recovering slightly.

It is clear that managers decided to rotate American stocks, as a net of 23 % of investors suffer from weight loss, compared to a net 17 % of weight last month. The decrease in 40 points is the largest in the history of the survey, and 69 % of the respondents said that the issue of “American exceptional”-or American stocks that outperformed the rest of the world-reached its climax. The bullish expectations about the Chinese economy, and at the same time, have become the base.

However, the BOFA survey study indicated that investors still expect the Federal Reserve to achieve the so -called “soft landing” or low inflation without stimulating the recession, and it is believed that the central bank will reduce interest rates twice to three times this year.

On Friday, the S&P finished a week in green for the first time in one month. Investors have received more good news during the weekend, with Reports This indicates the so -called mutual definitions announced on April 2, which Trump has ordered economic officials to design to each American trading partner, will be relatively narrow in the range. The market chanted with the news, as the S&P 500 increased by 1.5 % as of the afternoon.

This story was originally appeared on Fortune.com