US technology stocks are the world’s most crowded trade, say fund managers overseeing $601 billion, fueling fears about a bubble that could burst the market rally. Investors surveyed by Bank of America Corp. have never been so unanimous in their conviction on the most popular asset class, with 80% of participants citing long US tech, up from 59% in August. Among the market’s biggest tail risks, concerns about a tech bubble jumped to be ranked behind only a resurgence in Covid-19. At the same time, they don’t see a regional rotation as investors boosted their overweight in US equities and slashed exposure to euro-area and emerging-market stocks. A Covid-19 vaccine remains in focus, with 39% of surveyed fund managers expecting it in the first quarter of next year and 32% betting on the fourth quarter of 2020.

Source: Mint September 15, 2020 10:30 UTC