Bank of America: "Long seven technology giants" has become the most crowded trade again, and 78% of respondents expect short-term interest rates to fall in the next 12 months

According to Jinshi Data, Bank of America's August fund manager survey showed that investors, driven by optimistic earnings and improving economic sentiment, have once again poured into the stock market. "Long the Big Seven" has become the most crowded trade, including large tech stocks like Nvidia and Microsoft. The survey covered 169 fund managers, representing $413 billion in assets under management, with 45% of respondents considering this trade the hottest. Global investor sentiment reached its highest level since February 2025, with only 5% of institutions betting on a hard landing. Equity allocations increased to a net 14%, the highest level so far this year, but still down from 49% in December of last year. Furthermore, 78% of respondents expect short-term interest rates to fall over the next 12 months, with trade wars and inflation cited as key tail risks.