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Investors Switch to Cash From Stocks and Bonds Like It’s 2022

Julien Ponthus, Michael Msika
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⚡ Quantum Brief
Investors are rapidly shifting assets from stocks and bonds to cash amid escalating geopolitical risks tied to the Iran war, mirroring the market reaction to Russia’s 2022 Ukraine invasion. Fund managers’ cash holdings surged at the fastest pace in six years, according to Bank of America’s March survey, signaling heightened risk aversion and liquidity preferences. JPMorgan strategists warn the repositioning may accelerate further as the conflict’s economic fallout remains unpredictable, potentially prolonging market volatility. The exodus from equities and fixed income reflects fears of broader financial contagion, echoing post-2022 trends when global markets faced similar uncertainty. Analysts suggest the cash influx could persist until geopolitical tensions ease, delaying recovery in riskier asset classes.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Investors avoiding risks from the Iran war are selling stocks and bonds and rebuilding cash allocations, in an echo of strategies followed after Russia invaded Ukraine in 2022.Holdings of cash at fund managers has jumped by the most in six years, Bank of America Corp.’s latest survey of these investors showed this month. Meanwhile, strategists at JPMorgan & Chase & Co. said this week that shifts in positioning in response to the conflict may have much further to run.

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