Investor survey shows most bearishness in 11 months. So the contrarian call is to buy
CNBC: Investor pessimism reaches highest level in nearly a year, potentially signaling gains for risk assets, according to Bank of America’s Global Fund Manager Survey.
Transformation: Bank of America’s latest Global Fund Manager Survey shows that investor pessimism has hit its highest point in almost a year. This could indicate possible gains for risky assets, despite sentiment falling to its most bearish since June 2025. The survey, conducted from April 2 to April 9, captured responses from 193 investors managing $563 billion in assets. Chief Investment Strategist Michael Hartnett noted that extreme pessimism has historically acted as a contrarian indicator for markets, with previous lows in sentiment coinciding with key turning points for equities. While most respondents do not anticipate a recession, a deeper washout in sentiment may be necessary to signal a definitive bottom. Hartnett emphasized that easing geopolitical tensions, lower oil prices, rate cuts, and stronger corporate earnings would be crucial for a bullish scenario to unfold.
