Mega-cap tech stocks have a war chest of cash and a wide moat around their businesses that in the past have enabled steady growth during periods of economic weakness. The sector also outperformed as banking turmoil hammered the wider market in recent months.
Investors allocation to technology stocks jumped 14 percentage points over the past month to 16% overweight, which represents the highest allocation since December 2021. "Investors [are] most long growth vs value stocks since July 2020," Bank of America's Michael Hartnett said.at 5.6% of their portfolio, and allocations to bonds has hit a 14-year high, according to the survey. Meanwhile, Bank of America's proprietary Bull and Bear indicator is hovering around 3.4, which suggests positioning on Wall Street is still a contrarian positive for the market.
as the bearish skeptics are slowly won over by rising stock prices and begin to put their own money to work, further pushing prices higher. Investors of the survey highlighted the biggest tail risks facing the market right now, which included a credit crunch and recession, followed by high inflation and hawkish central banks. In terms of what could cause a credit event that leads to a recession, investors highlightedin Washington, D.C. According to the survey, 71% of surveyed investors expect a US debt ceiling resolution before the X-date, which the Treasury Department estimates is June 1.
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tech stocks could tumble as earnings recession sets in: Morgan StanleyTech stocks aren't immune to economic pain - and could be the next domino to fall, Morgan Stanley advisor says
Source: BusinessInsider - 🏆 729. / 51 Read more »