Tech stocks have been the most shunned in the first few weeks of 2022, with investors seeing signs of interest rate hikes by central banks as the biggest risk to the sector, surveys showed on Tuesday.
A Bank of America survey conducted Jan. 7-13 of investors with total assets under management of more than $1.2 trillion showed that managers slashed positions to the lowest levels since December 2008.
Another monthly poll conducted by Deutsche Bank showed that the overwhelming majority of respondents believe US tech stocks are in bubble territory as investors are more pessimistic about aggressive political moves and higher yields.
“Better-than-expected inflation continued to be the predominant driver of these fears, but a more aggressive Fed created much more concern among respondents,” Deutsche Bank strategists said.
At the other end, investors increased positions in equities, banks, commodities and industries — sectors perceived to benefit from higher rates.
Investors have become more bullish on European equities from a global reopening trade perspective and want to increase their exposure over the next 12 months as well, according to BoFA research.
Reference: CNN Brasil
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