BofA Survey Finds 78% of Investors See Market as ‘Overvalued’
- Only 18% of survey respondents expect a V-shaped recovery
- Hedge funds boost their equity exposure to highest since 2018
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Investors are sinking their cash in droves into a stock market that looks the most overvalued in decades as one of the most unloved rallies in history rattles the pros on Wall Street.
That’s the conclusion drawn from the latest seven-day Bank of America Corp. survey that ended on June 11 -- just as the S&P 500 had its worst drop since the March turmoil. The poll indicated that fund managers slashed their cash positions by the most since August 2009, to 4.7%, in order to use their dry powder to chase the rally. With global equity benchmarks up more than 30% from this year’s lows, hedge funds increased their exposure to stocks to 52%, the highest level since 2018, the survey showed.