Bank of America’s latest Global Fund Manager Survey shows that “long bitcoin” is now the second busiest trade. In addition, most fund managers believe that Bitcoin is in a bubble and agree with the Fed that inflation is temporary.
Bank of America fund manager survey, June
Bank of America (BofA) released its June Global Fund Manager Survey this week. The survey, conducted June 4-10, includes 224 fund managers with $ 667 billion in assets under management.
Fund managers were interviewed on many topics of concern to investors, from how the economy and markets are performing, to portfolio managers’ liquidity levels and the trades they consider to be the most exaggerated.
“Long Commodities” is now the busiest trade, overtaking “Long Bitcoin” which is now the second most crowded trade. The third most common trade is “Long Tech Stocks”, followed by “Long ESG”, “Short US Treasuries” and “Long Euro”.
Despite the BTC price drop, 81% of fund managers surveyed still believe Bitcoin is in a bubble. This is a slight increase from May, when 75% of fund managers surveyed said Bitcoin was in a bubble zone. Bank of America itself has also warned that the cryptocurrency is in a bubble. The bank’s chief investment strategist said in January that Bitcoin is “the mother of all bubbles.”
Meanwhile, 72% of fund managers say inflation is temporary and agree with what the Fed said. However, 23% believe that inflation is permanent. Federal Reserve Chairman Jerome Powell has used the word “temporary” several times to describe the threat of inflation to the US economy. Nonetheless, a number of people have suggested they disagree with him, including famous hedge fund manager Paul Tudor Jones and JPMorgan CEO Jamie Dimon.
What do you think of this Bank of America fund manager survey? Let us know in the comment section below.
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