We just witnessed the “biggest drop in US equity allocation ever”
Bank of America’s closely watched monthly fund manager survey affirms the “anything but the USA” mantra that’s become the market’s conventional wisdom in 2025.
Investors are voting with their feet amid a breakdown in the AI momentum stocks key to the market rally and heightened policy uncertainty stateside.
The March survey results show the “biggest drop in US equity allocation ever,” according to Chief Investment Strategist Michael Hartnett, along with the lowest exposure to technology stocks in more than two years.
69% of respondents said “US exceptionalism” has peaked as a market theme.
Between March 7 and 13, 171 fund managers with a cumulative $426 billion in assets under management responded to this month’s global fund manager survey questions.
While “Long Magnificent 7” is still deemed the most crowded trade by those surveyed, it’s clearly looking less crowded these days. The share of respondents deeming this trade to be the most widely held is down to its lowest since November 2023 as the cohort loses its magnificence.
The March survey results show the “biggest drop in US equity allocation ever,” according to Chief Investment Strategist Michael Hartnett, along with the lowest exposure to technology stocks in more than two years.
69% of respondents said “US exceptionalism” has peaked as a market theme.
Between March 7 and 13, 171 fund managers with a cumulative $426 billion in assets under management responded to this month’s global fund manager survey questions.
While “Long Magnificent 7” is still deemed the most crowded trade by those surveyed, it’s clearly looking less crowded these days. The share of respondents deeming this trade to be the most widely held is down to its lowest since November 2023 as the cohort loses its magnificence.
