As the trade war drags on, a record number of investors are scrambling to protect their portfolios from another sharp drop.
According to a new Bank of America Merrill Lynch survey out this week, 34% of investors say they secured downside protection against a big decline in the stock market over the next three months. That’s the highest level in the history of the poll, CNBC’s Tom Franck reports.
The bank’s chief investment strategist, Michael Hartnett, said no trade deal ahead of the survey meant “investor mood has soured significantly.” He flagged vulnerable long positions in U.S. stocks, emerging markets, tech and banks if technical levels don’t hold up this week.
More fund managers are now highlighting “trade war” as the No. 1 global tail risk to stock performance. And despite a rally Monday, the investors surveyed don’t think the recent selling is over.
Kate Rooney | CNBC Markets Reporter
@Kr00ney
