Around 177 participants with $530 billion in assets under management responded to the global fund managers’ survey. Fund managers also believe bitcoin is the second-most crowded trade, with technology stocks continuing to be the most crowded.
Bond tantrum is seen as a tail risk by 32 per cent of the respondents followed by inflation which was seen as a tail risk by 27 per cent.
The April fund manager survey showed modest rotation towards technology, healthcare, REITs out of emerging markets and staples.
While the Covid pandemic is not yet over, 64 per cent of the fund managers expect the global economy to get a lot stronger. Nearly 21 per cent say they are currently taking higher than normal risk levels, the survey showed.