It is all about inflation
- Tech stocks overweigh at 3-year lows
- Investors load up on stocks in banks and resources sectors
- Long Bitcoin most crowded trade, despite 75% saying it is a "bubble"
- Inflation biggest tail risk for markets, followed by taper tantrum
On the risk factors, well one leads to the other but it is worth noting what is the market actually watching right now. Besides that, the report shows that there are first signs of "peak optimism" in growth so that might be something to be wary of.
Other than that, the rotation in stocks pretty much reaffirms what we have been seeing - in a gradual pace - throughout the year so far with tech slowly going out of favour.