Markets overvalued; 2nd wave of Covid-19 biggest tail risk: BofA Securities

After a sharp recovery in global equity markets from their March 2020 lows, investor sentiment remains cautious with most global fund managers surveyed by BofA Securities in July saying the stock market remains overvalued. According to BofA Securities, 210 participants with $607 billion worth of assets under management (AUM) participated in the survey between July 2 and July 9.

Of those surveyed, 71 per cent believe the stock market is 'overvalued' and 74 per cent suggesting ‘long US tech stocks’ to be the most crowded trade. That said, 52 per cent of the fund managers surveyed by BofA Securities believe