Key Point: “Investor sentiment regarding economic prospects is the most negative in three decades … US equities have underperformed this year amid concern that President Donald Trump’s trade war will hurt growth, with 42% of survey respondents saying that a recession is likely in the world’s biggest economy.”

Bloomberg: Investors Haven’t Been This Bearish in 30 Years, BofA Poll Shows

By Michael Msika

• Investor sentiment regarding economic prospects is the most negative in three decades, yet fund managers’ pessimism isn’t fully reflected in their asset allocation which could mean more losses for US stocks, a Bank of America Corp. survey shows.

• Fund managers are extremely gloomy, with 82% of respondents to BofA’s monthly survey expecting the global economy to weaken.

• High uncertainty surrounding US trade policy and a spike in financial-market volatility has unsettled stock investors. Respondents are a net 36% underweight US stocks in April, down from 17% overweight in February, the biggest ever two-month drop.

• US equities have underperformed this year amid concern that President Donald Trump’s trade war will hurt growth, with 42% of survey respondents saying that a recession is likely in the world’s biggest economy.