Investor pessimism regarding the global economy has reached its highest level in the last three decades. According to the April survey by Bank of America (BofA), 82% of executives believe that global growth will slow down.
This is reported by Finway
According to a Bloomberg report, negative expectations have not yet been reflected in the structure of investment portfolios. Analysts led by Michael Hartnett believe that the worst for the markets is yet to come. The number of investors reducing their allocation to U.S. stocks in their portfolios has reached a historical high. Meanwhile, the average cash allocation in portfolios is only 4.8%, whereas it typically reaches 6% during crises.
Stock Market Decline and Recession Expectations
Amid rising trade tensions and stock market volatility, investors have significantly lowered their assessment of U.S. stocks. In April 2025, the undervaluation reached 36%, marking the largest two-month decline since previous crises. The S&P 500 index has dropped by 8.1% since the beginning of the year, which is worse than the cases of European and Chinese stock indices.
According to BofA analysts, significant market growth is only possible if the U.S. tariff policy is eased, the Federal Reserve lowers interest rates, or there is a stable improvement in macroeconomic indicators.
Concerns About Recession
Investor sentiment has worsened due to concerns about a recession in the U.S., with 42% of respondents considering it likely. These concerns have arisen against the backdrop of the trade policies of the Trump administration, which raise worries about the prospects for global economic growth.
The survey included 164 investors with assets totaling $386 billion and was conducted from April 4 to 10, 2025, including key institutional funds.
“JPMorgan Chase CEO Jamie Dimon acknowledged the destabilization in the U.S. government bond market, which amounts to nearly $30 trillion.”