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Fund managers see record crowding in long global semiconductors

In Bank of America’s Global Fund Manager Survey, cash holdings fell to 3.6% from 4.1%, while 83% of managers do not expect a Fed rate hike before the November midterms.

Reported · Written up by our desk · Central Banks

Bank of America’s Global Fund Manager Survey shows investor positioning in global markets becoming increasingly one-sided, with sentiment reaching levels the bank says are prone to reversals, according to Forexlive’s review of the latest findings.

The survey found a record 82% of investors are long global semiconductors, with just 2% of participants citing a hard landing scenario, and 54% expecting the global economy to avoid a downturn.

The report also points to policy expectations, with 83% of fund managers not anticipating a Fed rate hike before the November midterms, alongside a decline in cash levels to an “uber low” 3.6% from 4.1%.

Forexlive noted that such crowded positioning and complacency can raise the risk of aggressive unwinds if a catalyst or inflection point emerges.

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