Three 'pain trades:' Bank of America tells clients to be on the right side of these market moves

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Heading into year's end, Bank of America sees three 'pain trades' that investors should look out for.

With the second half of the year underway, there are three trades that investors should make sure they're on the right side of, Bank of America says. "Pain trades" are considered to be moves in the market that go against the position of a majority of traders, therefore inflicting a great deal of harm on them.

"Overweight capex growers that fail to monetize quickly enough could be vulnerable to de-risking." Cyclical stocks rally Another pain trade lies in the danger of investors neglecting cyclical exposure, as the firm thinks softening economic data is "not nearly enough" to justify an "extreme" lack of exposure in long-only funds.

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