BofA reveals in their June fund manager survey


  • Cash levels fall from 5.7% to 4.7% - biggest monthly decline since August 2009
  • Growth expectations are jumping
  • Long US tech and growth stocks are 'most crowded trade' for second straight month
  • Secondary virus outbreak is the 'biggest tail risk' for markets for third straight month

The headline reveals that a record 98% of investors think that the stock market is the most "overvalued" since the Dotcom bubble with many also seen abandoning cash in favour of piling into the stock market as the Fed keeps the punch bowl full.

If anything, the Fed pulling away life support from the market can be said to be the biggest tail risk at this point. Because even if coronavirus fears return in the future, guess who is going to be there to catch the market when it falls once again?