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Tech stocks most 'crowded trade' of all time: BAML survey

FILE PHOTO: A trader passes by screens showing Spotify on the floor at the New York Stock Exchange (NYSE) in New York, U.S., March 13, 2019. REUTERS/Brendan McDermid

NEW YORK (Reuters) - Too many investors have piled into U.S. technology stocks, making the sector the most “crowded trade” of all time and difficult to unwind, while a tech bubble is the biggest risk after an expected second wave from the COVID-19 pandemic, a BofA Securities survey of fund managers said on Tuesday.

Institutional investors are “rotating” into cyclical stocks and not “chasing” momentum since the rally from March lows, while a majority now say there’s a new bull market compared to one-quarter in May, the survey found.

A credible COVID-19 vaccine will most likely trigger higher bond yields, 41% of respondents said in the survey conducted Sept. 3 through Sept. 10, while 37% said they expect a vaccine announcement in the first quarter of 2021.

There were 199 respondents to the global survey and 90 who responded to a regional survey, Bank of America said.

Reporting by Herbert Lash

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