The latest BofA fund manager survey results are out
- 46% of investors say it is a 'bull market', up from 40% in July
- Long US tech, growth (59%) the most crowded trade (4 straight months now)
- Long gold (23%) is the next most crowded trade
- Coronavirus second wave (35%) remains biggest tail risk (5 straight months now)
- US-China trade war (19%) and US election (14%) are next biggest risk factors
I think the sentiment that this was a bear market rally has died quite a while back. The fact that the Nasdaq is making record highs and the S&P 500 itself is close to its own all-time highs is continuing to put that argument to rest - for now at least.
While this rally is built on shaky foundations, it is a hard one to ignore for any of the purists - especially those focused on the charts. For me, that line was crossed when the S&P 500 cracked the 200-day moving average and the 3,000 level at the end of May.
