Global investors are showing a dramatic shift in sentiment toward U.S. equities, as highlighted in the latest Bank of America Global Fund Manager Survey released on Monday. The survey reveals that a record number of institutional investors now intend to reduce their exposure to U.S. stocks, signaling one of the most bearish outlooks ever recorded. According to the data, around 50% of global fund managers plan to cut back on U.S. equities, marking the most extreme positioning shift seen in the survey’s history.
The accompanying chart from BofA Global Research offers a striking visual of this trend. The chart tracks global investors' intentions to overweight versus underweight U.S. equities from 2001 to April 2025. Historically, the graph shows periods of fluctuating optimism and caution, but the current reading for April 2025 has plunged to the lowest point on record. This sharp drop not only surpasses the lows seen during the 2008 financial crisis but also those during the March 2023 Banking Crisis. The visual underscores just how rapidly investor sentiment has soured.
Over the past month alone, allocation to U.S. stocks fell by 13 percentage points, bringing the net allocation to 36% underweight — the lowest level since the height of the 2023 banking turmoil. Even more striking is the two-month change: since February 2025, investor allocations have fallen by approximately 53 percentage points, the largest two-month decline in the survey’s history. This shows how quickly global fund managers are exiting U.S. equities, likely driven by fears of a weakening global economy, inflationary pressures, and broader geopolitical risks.
Adding to this caution, the survey also found that 82% of investors now expect the global economy to weaken — a record high in pessimistic expectations. This negative outlook has dragged global investor sentiment down to just 1.8 points, making it the fourth-lowest reading recorded since the 2008 financial crisis. Such a sharp and coordinated shift suggests that investors are bracing for tougher market conditions ahead, and that confidence in economic resilience has dropped dramatically in just a few short months.
This level of bearishness reflects deep-rooted concerns in the market, and the speed of the sentiment shift appears unprecedented. Whether this caution will translate into actual market declines or corrections remains to be seen, but the data from Bank of America points clearly to a historic retreat from U.S. equities.
Disclaimer:
This article is intended purely for informational and educational purposes. It is based on insights from the Bank of America Global Fund Manager Survey and publicly available data. The information shared does not constitute investment advice. Readers should conduct their own research and consult with licensed financial professionals before making any investment decisions.
