Finance
"Bull crash" drives biggest ever drop in US equity allocation - BofA
Published by Global Banking & Finance Review®
Posted on March 18, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 18, 2025
1 min readLast updated: January 24, 2026
In March, US equity allocation experienced a record drop due to stagflation and trade war fears, according to a BofA survey. Global investors increased cash holdings.
MILAN (Reuters) - Allocation to U.S. stocks saw the biggest drop ever in March with concerns over stagflation, trade wars and end of U.S. exceptionalism driving a "bull crash" in sentiment, a survey of investors from BofA Global Research showed on Tuesday.
Global investors raised their allocation to cash to 4.1% from 3.5%, ending a "sell signal" triggered in December, with the speed of the downturn in sentiment being "consistent with end of equity correction", BofA said.
Global growth expectations saw the second biggest drop on record, but, at the same time, allocation to euro zone stocks was the highest since July 2021, with banks becoming the world's favourite sector, according to the survey.
The survey included 171 participants with $426 billion of assets under management.
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
The article discusses the record drop in US equity allocation in March, driven by concerns over stagflation, trade wars, and the end of US exceptionalism.
Global investors increased their allocation to cash from 3.5% to 4.1%, ending a 'sell signal' triggered in December.
Allocation to euro zone stocks reached its highest level since July 2021, with banks becoming the favored sector.
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