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BofA Clients Are Most Underweight on Tech Stocks Since 2006

  • Fed’s quickfire rate-hike path seen as major risk for tech
  • Equity allocations drop to 31% overweight from 55% in January

Fund managers are the most underweight on technology stocks in almost 16 years as they brace for aggressive Federal Reserve policy tightening, the latest Bank of America Corp. survey shows.

Net allocation to the tech sector fell to the lowest since August 2006, according to the poll conducted from Feb. 4-10. Most of the participants sent their responses before Thursday’s red-hot U.S. inflation print that prompted investors to price in about seven Fed rate hikes in 2022.