Risk-off Sentiment Rises as Investors Return to 2022's "Sell Stocks, Hoard Cash" Play

BlockBeats News, March 26th, to mitigate the risks of the Iran war, investors are selling off stocks and bonds, increasing their cash holdings, mirroring the strategy following the 2022 Russian invasion of Ukraine. A recent survey of fund managers by Bank of America this month showed the largest jump in cash holdings in six years. Meanwhile, JPMorgan strategists stated this week that portfolio adjustments in response to the conflict may be far from over.

A team at JPMorgan led by Nicholas Panigirtzoglou said in a report that as long as geopolitical and macro uncertainty remains elevated, the currently below-historical-level cash allocations will continue to be a drag on future equities and bonds. Investors have been simultaneously selling stocks, bonds, and gold, preferring to increase their cash holdings. However, compared to the outbreak of the Russia-Ukraine conflict, cash levels in portfolios remain at a moderate level. (FXStreet)