Bank of America released its monthly fund manager survey today. The data is particularly interesting and shows some major trends seen on global financial markets. First and foremost, a long position on bitcoin overtook “long tech” and became a most crowded trade in January, according to BofA’s survey. Long position on tech stocks was the most crowded trade since October.
Positioning among surveyed fund manages seems noteworthy as well. Industrials, emerging markets and materials topped the list, which actually reflects the rotation trade, which was initiated earlier. Cash is the biggest “laggard” here.
Apart from that, the survey indicates that steeper yield curve expectations reached new all-time highs. A record 92% of surveyed investors expected higher inflation over the next year. Investors might spot these expectations on debt markets - US yields have been rising recently. US 10-year yield climbed above 1.10%.