Investors remain cautious as second wave fears grow - BofA survey

Stockmarkets viewed as 'overvalued'

David Brenchley
clock • 2 min read

Investors remain cautious, according to the latest fund manager survey from Bank of America (BofA), as cash remains at elevated levels and stockmarkets are seen as overvalued.

The number of fund managers that believe the stockmarket is ‘overvalued' fell back from June's survey but remained at all-time highs of 71% in July. Meanwhile, cash levels within institutional funds increased to 4%, from 3.3% in June; retail funds' cash weightings decreased slightly to 4.8%, from 5.2%. The most crowded trade, meanwhile, remained ‘long tech and growth', as so-called ‘work from home stocks' thrive amid the coronavirus pandemic leaving most office workers in situ. At 74% of respondents, July's reading for most crowded trade was the highest ever recorded. 'Undoubtedly wor...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

PA360: Framing of information to investors 'extremely pervasive'

PA360: Framing of information to investors 'extremely pervasive'

Consumer Duty states consumer biases must not be exploited

Jenna Brown
clock 25 April 2024 • 1 min read
Schroders chief executive Peter Harrison to retire in 2025

Schroders chief executive Peter Harrison to retire in 2025

Harrison began his career at Schroders as a graduate in 1988

Cristian Angeloni
clock 24 April 2024 • 2 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 19 April 2024 • 2 min read