Silver Rises Over 120% YTD 
Bank of America’s monthly survey shows fund managers have experienced a “bull crash” in sentiment, with optimism rapidly draining.
The survey recorded the second-biggest drop in global growth expectations in its history, plummeting from -2% in February to -44% in March. U.S. equity allocations saw their largest decline ever, while cash levels jumped from 3.5% to 4.1% – the biggest increase since March 2020.
Bank of America strategists attribute this shift to fears of stagflation, trade wars, and the end of “U.S. exceptionalism.” Despite the pessimism, only 11% of respondents anticipate a hard landing, suggesting positioning hasn’t reached extreme bearish levels.
The strategists note that inflation and trade war concerns would need to reverse for the S&P 500 to exceed 6,000 in Q2, while a recession could push it below 5,000. They offer contrarian investment strategies based on either bullish or bearish outlooks.
