Are institutional investors losing faith in U.S. stocks? Recent data suggests a significant shift, with institutional investors dumping U.S. stocks at a record pace. According to a closely followed survey, institutional investors who trade through Bank of America are pulling money from U.S. stocks at the fastest pace on record. This exodus isn't just a blip; global fund managers dumped a record amount of US stock during last week's sell-off, BofA found.

Clients of Bank of America Securities dumped stocks last week at the fastest pace in years, according to a weekly report from a team of equity analysts. The reasons behind this massive sell-off are complex, but the surveyed investors expressed pessimism around the global economy, and some analysts suggest concerns over potential trade wars are fueling the fire. BofA Securities LONDON (Reuters) reports that global investors have slashed their holdings of U.S. stocks by a record amount in the past two months. This trend is compounded by a record number of investors anticipating further economic headwinds.

The scale of this divestment is substantial. Data shows that in the past week, institutional investors withdrew nearly $6 billion from U.S. stocks, marking the second-largest net outflow in at least 15 years, according to data by Bank. The question now is whether this is a temporary correction or a sign of a longer-term shift away from U.S. equities by major institutional players. The implications for the market could be significant.

Global investors have slashed their holdings of U.S. stocks by a record amount in the past two months, and some analysts believe a trade war could be the trigger for further declines. Investors are closely watching these trends to understand the future direction of the U.S. stock market.