Financial institution of America Survey: Commerce battle fears rise as US equities stay overvalued

Investor considerations over a possible world commerce battle are escalating, with 42% of fund managers in Financial institution of America’s newest survey citing it as the most important threat to dangerous belongings in 2025—up from 30% in January.

The prospect of a commerce war-induced recession has now overtaken inflation and rate of interest hikes as the highest “tail threat,” with 39% of respondents seeing it as probably the most important menace, in comparison with 28% nonetheless centered on financial coverage. Only a month earlier, rising bond yields had been seen as the most important hazard, highlighting how shortly market sentiment has shifted.

On the identical time, traders proceed to specific warning over U.S. equities, with 89% of these surveyed believing they’re traditionally overvalued—the best share since not less than April 2001. This sentiment has remained persistent over the previous decade, with a mean of 81% of fund managers frequently seeing U.S. shares as overpriced. Regardless of these considerations, markets have up to now remained resilient, although heightened geopolitical tensions and financial uncertainty may put stress on valuations within the months forward.

This man loves this: “common of 81% of fund managers frequently seeing U.S. shares as overpriced”

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



Source link