Too many investors have piled into U.S. technology stocks, making the sector the most “crowded trade” of all time and difficult to unwind, while a tech bubble is the biggest risk after an expected second wave from the COVID-19 pandemic, a BofA Securities survey of fund managers said on Tuesday.
Too many investors have piled into U.S. technology stocks, making the sector the most “crowded trade” of all time and difficult to unwind, while a tech bubble is the biggest risk after an expected second wave from the COVID-19 pandemic, a BofA Securities survey of fund managers said on Tuesday.
Institutional investors are “rotating” into cyclical stocks and not “chasing” momentum since the rally from March lows, while a majority now say there’s a new bull market compared to one-quarter in May, the survey found.
A credible COVID-19 vaccine will most likely trigger higher bond yields, 41per cent of respondents said in the survey conducted Sept. 3 through Sept. 10, while 37per cent said they expect a vaccine announcement in the first quarter of 2021.
There were 199 respondents to the global survey and 90 who responded to a regional survey, Bank of America said.