Institutional investors are increasingly retreating from US equities and the dollar, influenced by President Trump's tariff policies, which have triggered significant market uncertainty. A recent Bank of America survey reveals that 61 percent of fund managers expect the dollar to weaken, the highest bearish outlook in nearly two decades. Concurrently, there has been a notable shift towards safer assets such as gold and government bonds. Investments in US stocks have seen historical declines, particularly in sectors like technology and banking, with a growing interest in defensive sectors amid fears of a potential global recession.
Institutional investors are retreating from US equities and the dollar as Trump's tariff policies exacerbate economic uncertainty, with a notable shift towards safer assets.
A record 61% of fund managers predict the dollar will weaken, reflecting the highest bearish sentiment in almost 20 years, amidst fears of a global recession.
David Folkerts-Landau highlights that the current situation resembles a dollar confidence crisis, which he views as a potential shock larger than the Bretton Woods collapse.
Investors are pulling away from US stocks, marking the sharpest drop in allocations over two months, while showing unprecedented interest in defensive sectors.
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