Crowded Tech Stocks Have Investors ‘Paranoid’ About Bubble Risks

  • September BofA survey shows switch into cyclicals, out of tech
  • Fund managers are more confident of economic recovery: BofA
Tech Stocks Present 'Golden Buying Opportunity': Analyst Ives
Lock
This article is for subscribers only.

U.S. technology stocks are the world’s most crowded trade, say fund managers overseeing $601 billion, fueling fears about a bubble that could burst the market rally.

Investors surveyed by Bank of America Corp. have never been so unanimous in their conviction on the most popular asset class, with 80% of participants citing long U.S. tech, up from 59% in August. Among the market’s biggest tail risks, concerns about a tech bubble jumped to be ranked behind only a resurgence in Covid-19.