LONDON (Reuters) - U.S. technology and high-growth stocks have been the "most crowded" trade for three months in a row, Bank of America's fund manager survey showed on Tuesday, reflecting the market's bullishness after the U.S.-China preliminary trade deal.
Allocations to equities rose to net 32% overweight in January from net 12% underweight in August 2019 as investors took comfort from positive trade talks between the world's top two economies and recession fears fading.
BofA said the reversal in positioning in equities was the biggest since 2011, although it was still well below the 50% overweight level seen during prior market "tops".
It added that January's positioning showed investors were "bullish", but not "euphoric".
Respondents in the survey forecast S&P 500 (SPX) index to peak at 3,400 in the third quarter.