The survey showed that net allocation to the tech sector fell to the lowest since August 2006.
However, long-tech continues to remain the most crowded trade.
The survey showed fund managers are underweight assets that are vulnerable to interest rate hikes such as emerging markets, tech and bonds.
“The February fund manager survey is bearish, driven by fears of rate hikes and slower growth. Sentiment is bearish but not extremely bearish,” the survey showed.
Bank of America said only 30% of investors expect an equity bear market in 2022 while 66% do not expect it. Cash levels have gone up as investors got more cautious or bearish, the survey noted.
“FMS (fund manager survey) cash allocation jumped 5 percentage points to net 38% overweight, the highest since May 2020,” the survey showed. The survey also showed that hawkish central banks are being seen as the biggest tail risk followed by inflation and asset bubbles. The survey took place during February 4-10.
