LONDON, Jan 18 (Reuters) - High-flying tech stocks, the
darling of the pandemic, are the most shunned counters in the
opening weeks of 2022 as investors see a flurry of rate hikes
from central banks as the top risk to markets, investor surveys
said on Tuesday.
A BofA survey conducted from Jan 7-13 among investors with
combined assets under management of more than $1.2 trillion
showed fund managers had cut their overweight positions to their
lowest levels since December 2008.
A separate monthly survey conducted by Deutsche Bank showed
an overwhelming majority of respondents believed U.S. technology
shares are in bubble territory as investors remained more
bearish on hawkish policy moves and higher yields.
"Higher-than-expected inflation continued to be the
predominant driver of those bearish fears, but its counterpart,
a more aggressive Fed, drew much more concern from respondents
this month," Deutsche Bank strategists said in a monthly note.
In response to more central bank rate hikes being likely
this year, investors have ramped up their positions in equities,
particularly in Europe, cyclical banks, commodities and
industrials - sectors perceived to benefit from higher rates.
The change in positioning has been extreme compared to
historical averages. Investors have ramped up bullish bets in
banks, commodities and materials, and cut positions in
technology, emerging markets and bonds.
Investors have become more bullish on European stocks from a
global reopening trade perspective and want to increase their
exposure as well in the next 12 months, according to BoFA's
The top three crowded trades were long technology stocks,
short U.S. Treasuries and short Chinese stocks, according to the
U.S. investment bank.
(Reporting by Danilo Masoni and Saikat Chatterjee; Editing by
Karin Strohecker and Andrew Cawthorne)