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

Wrestling with the idea of a new world order? Try European smaller companies

Wrestling with the idea of a new world order? Try European smaller companies

'Let me try to explain the case for calm'

David Walton
clock 16 March 2026 • 4 min read
Low-cost platforms spur one in three UK adults to invest

Low-cost platforms spur one in three UK adults to invest

Trading 212 the main beneficiary

Michael Nelson
clock 12 March 2026 • 2 min read
Understanding the investment appeal of the energy addition

Understanding the investment appeal of the energy addition

Positive change takes time

Tim Humphreys
clock 11 March 2026 • 4 min read