Growth expectations plummet as fund managers mimic Buffett

Warren Buffett sits and leans his head on his left hand as he listens with an American flag in the background. (Credit: Chip Somodevilla—Getty Images)

• Fund manager sentiment has been highly correlated with the performance of the S&P 500. BofA analysts led by chief investment strategist Michael Hartnett said dimming views about American stocks have driven a "bull crash" in sentiment, but they indicated the speed and scale of the correction bodes well for the market going forward.

Money managers’ optimism has faded fast in the early days of Trump 2.0. Bank of America’s monthly global fund manager survey revealed sentiment nosedived in March, resulting in the second-worst plunge in global growth expectations and biggest drop in U.S. equity allocation since BofA began conducting the survey in 1994.