The “frothy bull” market sentiment of the past few months is ending as global investors turn bearish, according to Bank of America’s latest fund manager survey. The bank’s broadest measure of the market’s mood fell to a six-month low in March and cash levels surged, strategist Michael Hartnett wrote in a note.
Participants cited the ongoing war in Iran and turmoil in private credit as reasons to be nervous. The survey showed the biggest jump in cash since March 2020, with holdings reaching 4.3 per cent in March. For the eighth month in a row, respondents said that private equity and private credit are the most likely source of a “systemic credit event.”
The war in the West Asia has turned investor attention away from the AI race, which was the focus of last month’s survey, to the risks facing the global economy as oil prices flirt with $100 a barrel. At the same time, market jitters around banks’ exposure to private credit are increasing. Still, investors aren’t yet as bearish as they were during April’s tariff turmoil. Positioning is “far from uber-bear levels seen at recent big lows,” Hartnett said.
First Published: Mar 17 2026 | 11:01 PM IST
