According to an April survey by Bank of America (BofA), investor sentiment towards the global economy has reached the highest level of pessimism in the last three decades, reports Bloomberg. The study indicates that 82% of financial executives expect a global slowdown in economic growth and are reducing their investment activity in American stocks.
This is reported by Business • Media
Investment Pessimism and Its Consequences
Analysts led by Michael Hartnett note that while negative sentiment has intensified, it has not yet fully reflected in investment portfolio structures. This may suggest that the worst for the markets is still ahead. According to the data, 82% of respondents expect a slowdown in global growth, and the number of those reducing their allocation to American stocks in their portfolios has reached a historic high. Meanwhile, the average cash allocation stands at just 4.8%, whereas during peak fears, this figure typically reaches 6%.
Deterioration of American Stock Valuations and Market Prospects
Amid rising trade tensions and increased volatility in the stock markets, investors have significantly downgraded their assessments of American stocks. In April 2025, the level of undervaluation reached 36%, marking the strongest two-month decline since previous crisis periods. Since the beginning of 2025, the S&P 500 index has fallen by 8.1%, lagging behind indices in Europe and China. BofA analysts believe that substantial market growth is only possible under conditions of easing U.S. tariff policy, a reduction in the Federal Reserve’s interest rate, or a stable improvement in macroeconomic indicators.
“The current mood of investors is explained by concerns about a possible recession in the U.S.: 42% of respondents consider it likely,” the study notes.
The survey included 164 investors with total assets exceeding $386 billion. The polling was conducted from April 4 to 10, 2025, among key institutional funds.