Market Stampede Turns Favorite Defensive Trades Into Danger Zone
- BofA finds big tech and IG credit are most popular long plays
- Goldman Sachs sees value in neglected low-volatility stocks
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Sometimes when volatility jolts financial markets, the safest trades can quickly morph into dangerous bets.
That’s what’s happening now in some corners, as investors spooked by the bank crisis and central-bank uncertainty crowd into big-tech stocks and highly rated corporate bonds. The rush for defensive assets has made both so expensive relative to history that they could be prone to painful reversals.