MILAN (Reuters) - Allocation to US stocks saw the biggest drop ever in March with concerns over stagflation, trade wars and the end of US exceptionalism driving a "bull crash" in sentiment, a survey of investors from BofA Global Research showed.

Global investors raised their allocation to cash to 4.1% from 3.5%, ending a "sell signal" triggered in December, with the speed of the downturn in sentiment being "consistent with end of equity correction", BofA said on Tuesday.

Global growth expectations saw the second biggest drop on record, but, at the same time, allocation to euro zone stocks was the highest since July 2021, with banks becoming the world's favourite sector, according to the survey.

The survey included 171 participants with $426 billion of assets under management.