U.S. tech stocks 'most crowded' trade for
bullish investors: BofA survey
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[January 21, 2020]
LONDON
(Reuters) - U.S. technology and high-growth stocks have been the "most
crowded" trade for three months in a row, Bank of America's fund manager
survey showed on Tuesday, reflecting the market's bullishness after the
U.S.-China preliminary trade deal. |
Traders work on the floor at the New York Stock Exchange (NYSE) in New
York, U.S., January 9, 2020. REUTERS/Brendan McDermid |
Allocations to equities rose to net 32% overweight in January
from net 12% underweight in August 2019 as investors took
comfort from positive trade talks between the world's top two
economies and recession fears fading.
BofA said the reversal in positioning in equities was the
biggest since 2011, although it was still well below the 50%
overweight level seen during prior market "tops".
It added that January's positioning showed investors were
"bullish", but not "euphoric".
Respondents in the survey forecast S&P 500 <.SPX> index to peak
at 3,400 in the third quarter.
(Reporting by Thyagaraju Adinarayan, edited by Julien Ponthus)
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