Bank of America: 'Going long on the seven major tech giants' has become the most crowded trade again, and 78% of respondents expect short-term interest rates to decline in the next 12 months.

PANews reported on August 11 that a survey by Bank of America in August revealed that investors are once again flocking to the stock market due to optimistic earnings performance and improved economic sentiment. 'Going long on the seven major tech giants' has become the most crowded trade, which includes large tech stocks such as Nvidia and Microsoft. The survey covered 169 fund managers managing assets totaling $413 billion, with 45% of respondents believing this trade is the hottest.

Global investor sentiment has reached a new high since February 2025, with only 5% of institutions betting on the possibility of a hard landing for the economy. The net allocation to stocks has increased to 14%, the highest this year, but still below the 49% in December of last year. Additionally, 78% of respondents expect short-term interest rates to decline in the next 12 months, with trade wars and inflation considered major tail risks.