91探花

President Donald Trump鈥檚 tariff situation hit New鈥痀ork hard. Financial鈥疶imes numbers show United鈥疭tates shares lost $5.4鈥痶rillion in value in just 2 trading days after the plan surfaced. Selling gathered pace as China replied with its own duties, and the mood across global markets darkened. The S&P鈥�500 sank 9% for the week, its worst run since early鈥�2020, while volatility increased.

Bank鈥痮f鈥疉merica鈥檚 latest Global Fund Manager Survey captured the extent to which this went. Allocations to United鈥疭tates equities fell by 40% units in March, turning a 17% overweight into a 23% underweight鈥�鈥斺�痶he highest monthly rotation on record. In the same poll 69% of managers said the tale of 鈥淯S exceptionalism鈥� has peaked.

And then, average cash holdings went up to 4.1% of portfolios, the highest level since the first pandemic spring, while global growth hopes fell to a 2 year low. In the same survey 63% of respondents now see the world economy slowing during the next year.

鈥� A majority now expect the administration to hurt growth and lift prices, effectively creating a stagflation threat,鈥� Bank鈥痮f鈥疉merica strategists Andreas鈥疊ruckner and Sebastian鈥疪aedler wrote. They warned that a tariff鈥慸riven slowdown could tilt portfolios towards cash and defensive shares for months.

How Did UK Shares Move To The Front Of The Line?

Wall鈥疭treet stumbled, and at the same time City鈥疉M reports that global managers turned 4% overweight on London鈥憀isted firms, the highest reading since mid鈥�2021 and only the second month in three years with a positive stance.

Just a month earlier the same survey had ranked Britain as the least attractive market, with an 18% underweight. The jump put UK equities behind only utilities and banks in the sector league table.

Cheaper valuations, a weaker pound and shelter from tariff crossfire all play a part, and Bank鈥痮f鈥疉merica鈥檚 poll also shows the largest cash build鈥憉p since early鈥�2020, meaning funds have dry powder (this, according to Investopedia is defined as “the cash reserves an individual company proactively maintains so that it can meet its obligations during times of economic stress”) that can be directed towards markets viewed as better value than New鈥痀ork. Lower earnings multiples give overseas buyers extra comfort even after sterling鈥檚 rebound.

Will The UK-US Flow Keep Rolling?

Reuters data from Calastone show UK savers poured 拢1.8鈥痓illion into North鈥疉merican equity funds in March, the 3rd largest monthly inflow in a decade. The rush came even as global managers ran from New鈥痀ork, which shows the divide between professional and retail money.

Tax year planning and a belief that Wall鈥疭treet had fallen far enough tempted retail buyers before the tariff news. Trading volumes reached unusual highs as opinions on the United鈥疭tates outlook pulled in opposite directions. That gamble looks painful now, but tax perks often exceed short鈥憈erm nerves.

Overall equity funds took in 拢1.4鈥痓illion during the month even as money left domestic shares, and 拢513鈥痬illion headed into money鈥憁arket vehicles for safety. Bond funds lost 拢700鈥痬illion. The pattern shows savers hedging their bets while still hunting for bargains.

The next survey will show whether that cash motivates more buying in London. For now, Bank鈥痮f鈥疉merica data hints that caution may stay through spring, keeping the FTSE on many buy鈥憀ists while Washington plots its trade course. Spring budgets and UK tax breaks could add extra fuel if global trade tension continues. Investors will watch April鈥檚 tariff deadlines for extra clues.