BAML FM SURVEY
Mar 16, 2021 AT 10:54AM
- Cash lvls - FMS cash levels up from 3.8% to still-low 4.0%.
- Crowded Trades - Long tech still the most crowded trade, followed by Bitcoin and ESG.
- Top Tail Risk - Inflation and taper tantrums now top risks, covid-19 not top risk for first time since Feb. 2020
- Allocations: to commodities at all-time-high. Biggest drop in tech exposure in 15 years, while overweight in banks and energy now largest since March 2018 and November 18, respectively.
- Asset Bubble - Only 15% of investors surveyed think U.S. Equities in a bubble, 25% say early-stage bull market, 55% say late-stage.
- US 10YR lvl - 43% of investors think 2% yields for U.S. 10-year Treasury could cause correction in stocks of over 10%.
- Finally, Net 93% of investors expect higher inflation in next 12 months, an all-time high, while Fed is expected start raising rates in February 2023 and Net 91% of investors expecting a stronger economy, the highest level in BofAs survey ever.
