A bullish bet on technology stocks, or “long tech,” has reclaimed the title of most-crowded trade in the financial markets, according to Bank of America’s (BofA) February survey of fund managers.
Bitcoin saw a surge in capital inflow last month, with prices reaching then-record highs above $40,000 on Jan. 8 – a 300% gain from early October lows near $10,000. Before that, betting in favor of technology stocks was the most preferred trade throughout the final quarter of 2020.
The BofA research shows betting against the U.S. dollar (“short dollar”) is still the third most-crowded trade. Meanwhile, cash levels in investment portfolios have plunged to 3.8% – the lowest level since 2013. According to the fund manager survey, when cash levels drop below the 4% mark, it indicates over-optimism and triggers a contrarian sell signal.
This content was originally published here.