Highlighting The Most Crowded Trades To Be 'Long Tech, Short USD, Long Bitcoin' Here Is The Bank Of America Investor Survey
Bofa survey weighs down heavily on Bitcoin. What are the decisions taken and how do they impact the investment portfolios? More on the topic in this short article.
Bofa Survey Results
This December fund managers who participated in the survey are sweeping up risk assets as the highly anticipated Bank of America fund manager survey has been published. As levels are down 4% the asset managers have dropped the cash for the first time in close to seven years. Saying the most crowded trades are long tech, short USD, and long bitcoin, moreover as strategists at Bank of America Corp. now.
According to the latest Bank of America’s fund manager survey published this week, cash assets are under by 4%. Collectively overseeing $535 billion in assets worldwide are participants in Bank of America’s survey. About the coronavirus vaccine bolstering the economy, Bofa’s survey shows that investors are very positive.
The Bofa strategists led by Michael Hartnett explains that as vaccine hopes induce strong buy the reopening trade, investor sentiment is bullish. In the first quarter of 2021, they say sell the vaccine. Bofa’s report also highlights the cash level decline is similar to the economic growth stage taking place after the 2008 sub-mortgage financial crisis.
According To Strategists.
The strategists stressed in the December Bofa fund manager survey that in both speed and magnitude, recovery expectations have also surpassed prior recessions.
Most crowded trades and one of them includes bitcoin (BTC), interestingly the Bofa report also mentions. That investor sentiment is long tech, short US dollar, and long bitcoin, as the survey shows.
Believing that investment profits will accumulate more so during the next year, is roughly 85% of the surveyed fund managers.
Investors these days are looking for a haven from the massive government bailouts, according to Danny Scott CEO and cofounder of CoinCorner, an Isle of Man-based crypto exchange and wallet provider.
In a note to investors, Scott wrote that the coronavirus crisis had the knock-on effect of causing a long-awaited financial crash in March as touching briefly on the unfortunate situation the world has suffered this year. Adding to it Scott says the Bank of England likely prints towards £1 trillion and many more around the world following suit as this resulted in Government bailouts as the US Federal Reserve printing $3 trillion along with another $2 trillion on the way. Which looks to become the norm, not to forget the introduction of negative interest rates.
Further on the CoinCorner cofounder wrote that
This comes with a huge risk of inflation on a scale unseen in these territories before although this may be necessary for their eyes to stimulate the economy and its future protection. They have already surpassed this in 2020 alone with more likely to come as putting this into perspective the Fed printed $ 3.9 trillion between 2008 and 2014 during the 2008 financial crisis. People look for a haven and bitcoin is becoming this when it comes to financial uncertainty.
Ever since fund managers exited cash positions, they jumped on emerging -markets and technology stocks as Bofa strategists and Michael Hartnett detailed in the December survey. It was the vaccine optimism that will spur economic recovery in Q2 2021, as 42% of the surveyed managers said about it. According to the Bofa survey data, 76% of the money managers think the recovery will be far greater.
Appreciating the fact that among the most crowded trades in 2020 was the call to long bitcoin of course as bitcoiners and crypto proponents
The Final Thoughts And Words
As it was found Bofa fund manager survey’s top the trades: along as 1 long Nasdaq, 2. the short US dollar and close 3. long bitcoin in a tweet. The individual Asi De Silva added, forcing retail to pay net-asset-vale NAV premium for GBTC as professional investors are long bitcoin yet the US Securities and Exchange Commission SEC cant approve an exchange-traded fund ETF.
Bitcoin BTC has been named the most crowded investment of the year not for the first time. Back in 2017 in Merrill Lynch’s December global fund manager survey, the crypto asset also captured that position.
This is how the BTC has been finding its foot and Bofa has to regulate its decisions accordingly. This is why most investors are banking on the best way to find their investments coming in with more credibility.
With more on the news regarding BTC, we have always tried to get the best out of the decisions taken up by the Feds as well as the Bofa. We bring more details to you on this specific topic.