(Bloomberg) —<\/span> The \u201cfrothy bull\u201d market sentiment of the past few months is ending as global investors turn bearish, according to Bank of America Corp.\u2019s latest fund manager survey.<\/p>\n The bank\u2019s broadest measure of the market\u2019s 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.<\/p>\n Most Read from Bloomberg<\/p>\n Notably, the survey also showed the biggest jump in cash since March 2020, with holdings reaching 4.3% in March. For the eighth month in a row, respondents said that private equity and private credit are the most likely source of a \u201csystemic credit event.\u201d<\/p>\n The war in the Middle East has turned investor attention away from the artificial intelligence race, which was the focus of last month\u2019s survey, to the risks facing the global economy as oil prices flirt with $100 a barrel. At the same time, market jitters around banks\u2019 exposure to private credit are increasing.<\/p>\n Still, investors aren\u2019t yet as bearish as they were during April\u2019s tariff turmoil. Positioning is \u201cfar from uber-bear levels seen at recent big lows,\u201d Hartnett said. And investors were more relaxed about the AI spending race, with a majority saying the industry is not in a bubble.<\/p>\n Other highlights from the report include:<\/p>\n Investors are most long commodities since April 2022. The survey showed that allocation is at a net 34% overweight.<\/p>\n<\/li>\n A net 53% of investors were overweight emerging-market equities, the highest since February 2021.<\/p>\n<\/li>\n Participants had the lowest allocation to consumer discretionary stocks since December 2022.<\/p>\n<\/li>\n<\/ul>\n The BofA Global survey was conducted between March 6 and 12, and canvassed 181 participants with $529 billion in assets.<\/p>\n \u00a0<\/p>\n –With assistance from Michael Msika.<\/p>\n Most Read from Bloomberg Businessweek<\/p>\n \u00a92026 Bloomberg L.P.<\/p>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/figure>\n
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