The markets are still in the thick of trade policy turmoil and economic uncertainty, and yet investors are nowhere near ready to play defense. In fact, investor positioning in defensive stocks — measured by the percentage of healthcare stocks, consumer staples and utilities in the S & P 500— has fallen to the lowest level since 2000, according to data from Bank of America. That offensive stance has stood firm even as the stock market continues to be whipsawed by President Donald Trump’s tariff policies that change on a dime, while worries deepen about the vigor of the economy. Trump said Friday that China violated its preliminary trade agreement, in turn triggering another volatile session on Wall Street. .SPX YTD mountain S & P 500 in 2025 The Trump administration also considered using a provision of the Trade Act of 1974 to implement tariffs of up to 15% for 150 days, according to the Wall Street Journal. Bank of America strategists led byMichael Hartnetthave been advising clients to sell into rallies, saying the macroeconomic environment remains risky. The bank is recommending a stepped up allocation to bonds, international equities and gold in 2025. Still, stocks are on the verge of closing out May with strong gains following a tumultuous April. The S & P 500 has added nearly 6% this month, while the Nasdaq has surged 9.2%. The 30-stock Dow Jones Industrial Average has gained 3.6% on the month.
