Investors Are the Most Bearish on Stocks Versus Bonds Since 2009
- Survey is bank’s most bearish this year as growth seen slowing
- Pessimistic sentiment is contrarian support for risk assets
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Investor allocation to equities relative to bonds has dropped to its lowest level since the global financial crisis as worries about a recession take hold, according to Bank of America Corp.’s global fund manager survey.
In the most bearish survey of this year — the first after banking turmoil roiled markets last month — investors indicated that fears of a credit crunch had driven up bond allocation to a net 10% overweight — the highest since March 2009. A net 63% of participants now expect a weaker economy, the most pessimistic reading since December 2022.