So here’s the thing about markets right now: they’re absolutely ripping. Stocks are hitting records, crypto’s pumping thanks to Trump’s crypto-friendly vibes, and retail traders are back to their meme stock shenanigans like it’s 2021 all over again. Everything looks peachy, right?
Well, not if you’re managing billions of dollars for a living.
A fresh survey from CoreData Research just dropped some fascinating tea about what institutional investors—you know, the people who actually move markets—are really thinking. And spoiler alert: they’re not nearly as chill as the party atmosphere suggests.
Here’s the kicker: 49% of these big-money players think markets are way too relaxed about Trump’s tariff policies. That’s basically half of institutional investors looking around the room going “Is everyone else seeing this?” while retail traders are doing victory laps.
And get this—80% of institutions are already making moves to protect themselves from trade policy volatility. That’s not exactly “buy the dip” energy, is it?
The survey, which polled 132 institutional investors and 22 consultants, reveals some pretty sobering concerns. Nearly 70% are worried that Trump’s trade policies could trigger a global shift away from US treasuries and the dollar. That’s like being concerned that your house party might burn down the neighborhood—technically possible, but you really hope it doesn’t happen.
Even more telling: 64% think tariffs will lead to both higher inflation AND slower growth. In economics, that’s called stagflation, and it’s about as fun as it sounds. Think of it as the economic equivalent of being stuck in traffic while your car overheats.
Now, Trump has been busy making deals—he just inked agreements with Japan and the EU this month. But institutional investors aren’t buying the “tariffs are good actually” narrative. They’re looking at the long game while everyone else is focused on today’s green candles.
Michael Morley from CoreData puts it perfectly: institutions are displaying a “much nimbler reaction function” than usual. Translation: they’re not waiting around to see what happens. They’re rotating into value stocks and defensive sectors (41% of them), or just sitting on more cash (40%). Only 20% are betting on commodities, which tells you something about their confidence levels.
Here’s what’s really interesting: this isn’t panic selling or doom-and-gloom predictions. It’s sophisticated money quietly adjusting their portfolios while the music’s still playing. They’re not leaving the party—they’re just making sure they know where the exits are.
The disconnect is fascinating. Retail investors are riding the wave, institutions are building lifeboats. Both can be right in the short term, but history suggests you want to pay attention when the smart money starts getting defensive.
So while markets keep partying like it’s 1999, remember that the people who’ve seen this movie before are already thinking about the sequel. And spoiler alert: sequels are rarely as good as the original.