A month is a long time in markets. In the age of Donald Trump it’s an eternity.
Just four weeks ago, Bank of America’s widely followed global fund manager survey was among the most bearish on record as investors feared that a prolonged trade war would result in a value destructive recession.
The broker was inclined to tear up this month’s edition in which most of the responses were gathered before a trade truce was struck between China and the US. Sentiment has now swung positive, which is reflected in surging stock prices. The S&P 500 Index is up almost 9 per cent between the mid-month surveys while the Nasdaq is 13 per cent higher.
Source: https://www.afr.com/markets/equity-markets/the-sell-signal-in-the-market-that-no-one-is-paying-attention-to-20250514-p5lz1d