Tech stocks most 'crowded trade' of all time: BAML survey

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.

FILE PHOTO: A trader passes by screens showing Spotify on the floor at the New York Stock Exchange in New York, U.S., March 13, 2019. REUTERS/Brendan McDermidNEW YORK: 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.

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