Institutional investors are pulling back from a record number of US equity and dollars, as President Trump's aggressive tariff policies send shockwaves through global markets and bring development expectations to a 30 -year low.
According to the top fund managers of the latest Bank of America survey, investors are adopting their most recession on the dollar in about two decades. Condured from 4 to 10 April, this pole surveyed 164 institutional investors, managing a combined $ 386 billion in property. It depicts a stunning picture of shifting spirit because capital runs away from risky US property and puts it in a safe haveon like gold and government bonds.
A pure 61 percent of the respondents expect the dollar to weaken in the next year – the highest ratio since May 2006 – while more than two -thirds see it as an overvalude. Greenback, usually defined a magnet, traditional patterns for the arrival of the market, and dropped about 10 percent from its January summit on a trade-loving basis.
The dollar fell 0.6 percent on Wednesday after Trump announced a 145 percent tariff on Chinese imports on Wednesday, while more than 70 other countries offered a 90 -day delay on mutual tariffs. Pounds reached $ 1.33 against the dollar.
Dwid Bank's Group Chief Economist David Folkrts-Glandouned warned: “The world is facing a dollar confidence crisis.
Investor Udaan from the dollar has reconciled with a dramatic withdrawal from the US equity. The allocation of US stocks has faced a two -month decline on records, with the fastest outflow from sectors such as industrial, technology and banking. In contrast, hunger for protective regions such as utilities is at a high level of 20 years.
The broad picture is one of the increasing uncertainty. The possibility of global recession is at its fourth highest level in two decades, and the expectations of inflation have not increased to the levels since 2021. One third of the survey has expected that the Federal Reserve is expected to give at least two rate deduction before the end of the year.
As a belief in traditional American asset classes, investors are doubled on gold. Precious metal increased to $ 3,300 per ounce record this week, reflecting its permanent appeal as a store of value. About half of the fund managers labeled Gold the world's “most crowded trade”, and while some expressed concern over its evaluation, the majority still see it as the best performing asset class in 2025.
Chris Turner, the global head of the markets in ING, said the US administration has effectively achieved its goal of weakening the dollar-at a large cost: “Trump's desires for a weak dollar have been fulfilled, although the global economy and asset markets with great damage.
Meanwhile, former Executive Officer of Hedge Fund, American Treasury Secretary Scott Besent has indicated on possible measures to stabilize the bond market, including reducing capital requirements on banks to encourage the purchase of American loans. Besent has also long expressed concern that excessive foreign demand of the dollar has overwall currency and damaged US export competition.
As the emotional turns and volatility increases, the wall strut raises changes in safe coasts – the flexibility of the American economy and the world's financial foundation, increasing the difficult questions about the role of the dollar's future.
Jamie young
Jamie is a senior reporter in Business Matters, who is bringing more than a decade experience in UK SME business reporting. Jamie holds a degree in business administration and regularly participates in industry conferences and workshops. When not reporting the latest commercial developments, Jamie has emotional about advising journalists and entrepreneurs to motivate the next generation business leaders.