Market crash brings back 2008 memories: BofA survey

The rapid-fire selloff in stock markets and dire economic forecasts due to the coronavirus have rattled investors and spurred a dash for cash, a BofA fund manager survey showed on Tuesday.

Cash holdings in March surged to an average 5.1 per cent, just shy of the 5.5 per cent seen during the 2008 financial crisis, as equity allocations were in a record collapse, mainly led by Eurozone and emerging markets, the survey showed.

World stocks have lost nearly a third or $21 trillion in value since mid-February as the epicentre of the virus shifted from China to Europe.


BofA said the worries triggered a slump in global growth expectations which saw their biggest drop ever in the bank's 26-year poll history.

Investors managing $516 billion said the virus was seen as the biggest "tail risk" for markets. The "most crowded" trade was in long U.S. Treasuries, a safe-haven.