Trump tariffs sink global economy outlook
Global fund managers have turned startlingly pessimistic when it comes to the chances that the world will be able to withstand the effect of across-the-board U.S. tariffs — and they're particularly bearish when it comes to the U.S. itself.
Why it matters: The most recent Fund Manager Survey from Bank of America underscores the thesis that global investors are selling America.
By the numbers: The most recent survey, which was conducted between April 4 and April 10, included 164 global fund managers who collectively have $386 billion of assets under management.
49% of them said that a hard landing is now the most likely outcome for the global economy, up from 6% in February and 11% in March.
The percentage of investors intending to cut their allocation to U.S. equities rose to the highest level since the survey began in 2001.
Bank of America's fund manager sentiment index is now lower than it was even at the depths of the pandemic crash in 2020.
Zoom out: 82% of respondents said the global economy is set to weaken — that's a 30-year high.
For the first time in over two years, the most crowded trade is no longer being long the "Magnificent 7" tech stocks. Instead, it's being long gold.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 hours ago
- Yahoo
Bank of America Reiterates ‘Buy' on Amazon.com (AMZN) as AI Delivery, Prime Ads Drive Growth
Inc. (NASDAQ:) is one of the . One of the biggest analyst calls on Thursday, June 12, was for Amazon. Bank of America reiterated the stock as 'Buy' with a $248 price target. The firm said that Amazon continues to innovate using AI to improve package delivery. The firm is bullish on the company's strategic growth initiatives and operational efficiencies, with one key reason being its increased ad loads on Prime Video. These increased loads are expected to nearly double ad revenues by 2025, boosting high-margin growth. Moreover, Amazon's restructuring of its grocery business is also likely to boost year-over-year margin growth. Even though it has a smaller market share compared to competitors, integrating Whole Foods under its broader umbrella is viewed as a positive step towards growth and customer retention. Finally, the company's efforts in artificial intelligence for package delivery are destined to improve efficiency and reduce costs. There are significant savings expected from robotics as well. 'Amazon announced three AI innovations improving delivery: 1) Wellspring, an AI-powered system that collects data from dozens of sources including satellite imagery, road networks, and prior deliveries to create a comprehensive map.' Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
9 hours ago
- Yahoo
Women Are About To Inherit $30 Trillion in ‘Great Wealth Transfer' — How To Prepare for Your Windfall
American women are poised to inherit $30 trillion in wealth in the next 10 years in what experts are calling the Great Wealth Transfer, already in progress. Much of this money will be passed generationally, and a significant amount will move from men to their wives, according to The Rising Wealth of Women, a Bank of America Institute report published last year. Although this transfer is narrowing wealth disparities between women and men, the study found that women are still less confident in their ability to manage a financial windfall. Watch Out: Read Next: A recent survey from Citizens Bank found 66% of Gen Z women and 50% of millennial women said they'd delayed actively managing their wealth because they lacked confidence or didn't know how to do it, and just 16% felt completely confident in their ability to manage an inheritance. Keep reading to learn how to take control of your money and prepare for your eventual windfall. The vast majority of women who've already inherited money from their parents or their husbands felt unprepared. Global wealth manager UBS noted in its May Own Your Worth report that 40% of women who inherited from their parents had done so with no wealth-transfer or estate plan in place. Widowed women faced similar predicaments, with 25% not even knowing where their husbands' wealth was. At the very least, know what assets your family has, where they're held and how they'll pass on to you. Tax planning is also important, according to 87% of the inheritance recipients surveyed by UBS. Discover More: Defining your short-term and long-term goals in writing gives you a blueprint to guide your financial decisions now and after you've received your inheritance. These priorities might include: Building an emergency fund Saving for retirement Paying off debt Starting a business Saving for your kids' education Buying a home Planning your own estate It's never too early to start working toward your financial goals. A budget is the best way to do it. In addition to eliminating waste, it gets you in the habit of spending mindfully and deliberately. That accountability is the key to financial health, and it'll give you more choices when it comes time to decide how to use your inherited funds. A high percentage of women have never had their own investment account — and those who do invest do so more conservatively compared to men. Bank of America found that they allocate smaller percentages of their portfolios to stocks, for example, and are less likely to invest in risky assets like cryptocurrency. That's not a bad thing if it aligns with your risk tolerance. But if you're staying out of the market or investing conservatively because you don't feel competent enough to take more risk, make financial education a priority. Many resources are available online. You can find continuing/community ed courses through local colleges and universities. A certified financial planner (CFP) can help advise you on the best approach to meet your financial goals and help you figure out how your inheritance fits into that plan — and into your own estate plan as well. When the time comes, they can also advise you about the benefits of working with an attorney, tax accountant and/or insurance agent to protect your expanding assets. It's not unusual to have mixed feelings about planning for an inheritance. After all, it forces you to acknowledge your family members' and your own mortality. But laying the groundwork now can put everyone's minds at ease knowing that you're ready to receive this transfer of wealth and prepare the next generation to receive theirs. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard Clever Ways To Save Money That Actually Work in 2025 I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on Women Are About To Inherit $30 Trillion in 'Great Wealth Transfer' — How To Prepare for Your Windfall
Miami Herald
10 hours ago
- Miami Herald
Car buyers should be nervous about this emerging trend
If you are in the market for a new vehicle, signs suggest that the buyers' market, which thrived in the first half of the year, is coming to an end. Due to the uncertainty surrounding President Donald Trump's trade war, dealers have increased incentives to combat consumer sentiment, which has been in the tank since Trump took office. Related: Car buyers should shop these brands for the best tariff deal Nearly half of American drivers cite car expenses as the reason they can't save any money, and the average American spends about 20% of their monthly income on auto loans, fuel, insurance, and maintenance. Most financial experts cap the monthly income you should spend on a vehicle at 15%. According to a MarketWatch Guides survey, about 10% of drivers say they spend 30% of their monthly income on driving, while another 12% said they "found themselves living paycheck to paycheck due to the financial strain of their cars." So, finding the right car for the right price is the name of the game. According to a new analysis from Bank of America, this year has been good for car buyers. But things are about to take a turn. Image source: Bounds/Bloomberg via Getty Images Car dealers have piled on the incentives in recent months to get customers through their doors. The plan worked. Auto sales have climbed sharply in recent months as consumers were motivated by the incentives and the need to buy vehicles before any tariff-related price increases. But Bank of America is now saying that the growth it saw in consumer vehicle loan applications has declined from its peak in April, "suggesting that 'buying ahead' has largely run its course." Bank of America expects lower-income and younger buyers to feel the most pain, as its data shows that median car payments have grown faster than new and used car prices since 2019. Shockingly, of those households with a monthly car payment, 20% have a payment over $1,000. Related: Car buyers notice a disturbing trend at the car lot Meanwhile, Baby Boomers, Gen X, and older Millennials all saw decreases in the percentage of their members paying more than $2,000 a month for their vehicles in the past few months. Gen Z and younger Millennials saw an increase in members paying over that amount. Bank of America also saw an increase in $2,000 a month auto bills among people making less than $50,000 and between $50,00 and $100,000. Meanwhile, that type of spending decreased among people making more than $100,000. "Bank of America payments data shows that overall median car payments are already more than 30% higher than the 2019 average and have now outpaced both new and used car prices, possibly as there is a push towards more expensive cars," analysts Taylor Bowley and David Tinsley wrote. However, the majority of automakers reported reducing incentive spending in May. Dealers like Volkswagen, Mazda, Land Rover, Volvo, and BMW all reduced incentive spending by more than 10%. Incentives were also notably lower month over month for Stellantis. Car buyers must consider several factors before making a purchase. Of course, the vehicle itself is only part of the expense, as it will need insurance, maintenance, and gas to run. In addition to capping your car payments at about 15% of your monthly take-home, financial experts also recommend shoppers aim for a 20% down payment, a 36 to 48-month loan term, and expenses (including insurance) at between 8% and 10% of your gross monthly income. Experts also recommend that you know your credit score and loan approval amount in advance and that you shop around with different lenders for the best rate. Related: New car prices are rising; here's where to get the best deal The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
