LONDON (Reuters) - Investors have ramped up their underweight tech position to its largest in more than 15 years as central bank tightening remained the top risk to global markets in 2022, according to a monthly fund manager survey by BoFA Securities.
Cash allocations jumped to their highest level since May 2020, according to the U.S. investment bank which polled 363 investors with more than $1 trillion of assets between Feb. 4 and Feb. 10.
Despite hawkish central banks, inflation and asset bubbles being the top three market concerns, only 30% of investors expect an equity bear market in 2022. Russia-Ukraine tensions is the fifth biggest "tail risk" for markets.
However, 41% of investors expect flatter yield curve, the highest since Feb 2005, while long technology stocks remains the most crowded trade, according to the February edition of the survey.