Big investors say tech stocks are in demand like never before — and Bank of America is recommending these 3 trades for the best protection against a collapse
, and others amid stay-at-home orders over recent months have sent valuations soaring. The Nasdaq — the more tech-heavy US stock exchange — is also at all-time highs.
Historically high levels of demand can create asset bubbles, however, with investors bidding up share prices beyond values justified by a company's fundamentals. And those bubbles eventually burst, sending stocks plummeting. That could end up being the case in US tech. A whopping 71% of the fund managers surveyed said they think the market — which is largely being driven by tech stocks — is overvalued.Nearly 200 fund managers who collectively manage $570 billion in assets responded to Bank of America's global survey. Most investors — 72% — were confident that strong global growth would help the economy recover from the coronavirus crisis.
For protection against a collapse — or for those interested in betting against current market trends — Bank of America's Michael Hartnett recommends three contrarian trades., "given positioning and stretched performance." , which some experts are expecting by the end of the year, could hurt tech valuations. Hartnett said a vaccine is "the catalyst" for lowering the demand for long-tech positions., with "oil prices acting well given whisper of higher OPEC supply.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Business Insider's best investing stories of the week ended July 14 - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
BofA gives 7 reasons why value may be poised for a comeback - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Stock market news: Stocks ignore record COVID cases, focus on earnings - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Millennials look to make a social impact with their investing dollar, study findsMillennials look to make a social impact with their investing dollar, study finds investinyou (In partnership with acorns.)
Read more »
Coronavirus investing advice, new opportunities to buy: Rick Rieder - Business InsiderBlackRock's bond chief who oversees $2.3 trillion told us how the coronavirus crisis created a game-changing investment opportunity for the first time in almost 20 years — and shared 4 ways he's cashing in
Read more »
Business Insider webinar with one-click checkout startup Fast - Business InsiderJoin us on Tuesday, July 14 at 1:30 p.m! BI reporter Shannen_Balogh will speak with Domm Holland, Fast's co-founder and CEO, and Jan Hammer, general partner at Index Ventures, about how to build a pitch deck and what it takes to win over investors.
Read more »