According to Odaily, a survey released by Bank of America on Tuesday reveals that global fund managers' bearish sentiment towards the U.S. dollar in May has reached its highest level since 2006. This trend reflects a decline in investor interest in U.S. assets, attributed to U.S. President Donald Trump's tumultuous trade policies.
Bank of America noted that investor sentiment was particularly low ahead of the Geneva conference, with a pessimistic outlook on U.S. assets. Although the May survey indicated a slight improvement in market sentiment compared to April, it remained largely negative, suggesting a potential minor increase in 'pain trades.'
The report highlights that fund managers have reduced their cash holdings from 4.8% to 4.5%, a move typically seen as a sign of increased confidence. However, their reduction in dollar holdings has reached the highest level since May 2006. Bank of America pointed out that 75% of the survey data was collected before the Geneva talks.