Wall Street has fallen out of favour with global fund managers who have cut allocations to the US stock market to their lowest level for 17 years to hunt for opportunities in Europe and emerging market equities.
The Bank of America global fund managers survey showed a net 39 per cent of asset allocators held an “underweight” position in US stocks in January, up from 12 per cent in December, in the most abrupt collapse in sentiment in a single month in the history of the closely followed report, which began in 1985.
The darkening outlook for US stocks underscores a significant shift in global markets. Wall Street equities were in vogue during the pandemic-era bull market that was sparked by massive stimulus deployed by the Federal Reserve and US government to combat the coronavirus crisis.