Weak US shares – Bank of America speaks of bull crash

• Investment mood on Wall Street turned
• Bank of America speaks of bull crash
• Donald Trump fuels recession concerns

The S&P 500, which reflects the wide US stock market, was still 23 percent climbed in 2024, but in February 2025 there was a change in the mood among investors. Since the beginning of the year, the stock market barometer has shown a decline of almost two percent (as of 24.03.2025).

Bofa sees bull crash

As “Yahoo Finance” reports, citing the Global Fund Manager Survey of Bank of America, carried out in March, the allocation of investors in US shares was reduced by 40 percent compared to the previous month – that was the strongest monthly decline since the start of records. In December the investor allocation had reached an all -time high. A team of Bofa strategists under the direction of Michael Hartnett described this development in the March survey as “bull mash”, in which investors’ appetite decreased on US shares in the face of the 10 percent decrease in the S&P 500 last month.

No purchase opportunity

The survey also shows that the reallocation in cash, not in bonds, took place. The portfolio allocation of investors in cash rose from 3.5 to 4.1 percent – the largest increase within one month since December 2021.

Hope that the rapid correction of the S&P 500 will be an opportunity to buy, Hartnett does not make investors, even if they have the necessary cash. In his opinion, the current mood levels are far from so high that one could “push your eyes”. Instead, the latest market movements are more of a rinsing of the excessive housesee.

Recession concerns

According to the survey, the main reason, which is why US shares last went down, was worried that the “trade war triggered a global recession”. An recession is an economic downturn in which the gross domestic product shrinks, unemployment increases and investments decrease. A total of 55 percent of those surveyed see the greatest risk of the markets, which is the highest conviction of a risk since the pandemic was listed in April 2020. Incidentally, behind in second place, only 19 percent is concerned that the inflation pressure prompted the US Federal Reserve Fed to increase the interest level.

The trigger for the newly attributed fears of recession were statements by US President Donald Trump, according to which the Americans should expect “a little restlessness” due to his customs and trade policy. The Republican did not rule out that there could even be a recession this year. “I hate to predict such things,” the 78-year-old told Fox News. “It is a transition phase, because what we do is very large. We bring prosperity back to America,” said Trump.

This is what the FED says for fear of recession

Fed boss Jerome Powell explained in connection with the latest economic forecast for the United States – which overshadowed by Trump’s aggressive customs policy more pessimistic than it was three months ago – that the risk of recession had increased – but it was not high. Powell admitted that at the moment it was difficult to predict how the economy will develop. However, he emphasized: “There will be tariffs and they tend to slow down growth. They tend to boost inflation.” As a result, the monetary authorities had taken up a waiting attitude at their last session and left the key interest on the range of 4.25 to 4.5 percent.

Editor finance.net

Selected leverage products on Bank of America

With knock-outs, speculative investors can participate disproportionately in price movements. Simply choose the desired lever and we will show you suitable open-end products on Bank of America

The lever must be between 2 and 20

Advertising