BofA Survey Shows Tech Exposure at Multi-Year High as Crowded Trades Raise Risks

Long global semiconductors remains the most crowded trade across financial markets, according to Bank of America's Global Fund Manager Survey conducted between October 2 and October 8. Fund managers pushed technology allocations to a net 37% overweight, the highest level since August 2020. However, macroeconomic caution is mounting, with a net 4% of respondents forecasting global economic weakness over the next 12 months. In Europe, 12-month upside expectations dropped to 4.53%, while global allocators' net underweight stance on European stocks deepened to 23%, the lowest level since September 2022.