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...

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