![]() ![]() The seven accounted for 29% of active funds’ weight in S&P 500 companies, 150 basis points higher than their weight in the index, according to Savita Subramanian, BofA’s head of US equity and quantitative strategy. Investors are the most overweight they’ve been on tech since December 2021, according to a Bank of America fund manager survey, and 60% of respondents view being long big tech as the most crowded trade.Ī BofA analysis of second-quarter filings shows that a fifth of funds had more than 40% of their assets in the seven biggest tech names. And fund managers who missed the first-half rally have been reliable buyers at any sign of weakness.īut the degree of concentration in positioning has intensified. The group boasts rock-solid balance sheets, while growth in both earnings and revenue is expected to outpace the overall market next year, according to data compiled by Bloomberg Intelligence. Apple fell 2.9% for a two-day slide of more than 6%. The tech-heavy index is virtually flat so far in the third quarter after dropping 0.7% on Thursday. But the backdrop has turned less friendly, with rising Treasury yields among the threats to the group’s sky-high valuations. “Tech has shown such strong leadership that if it rolls over, it’s going to be very, very challenging for the market to perform."Įxcitement over AI and signs the Fed was nearing the end of its tightening cycle drove the Nasdaq 100 to a 39% gain in the first half of the year. “Where tech goes is going to be where the US equity market goes," said Greg Boutle, head of US equity and derivative strategy at BNP Paribas. Also read: G20 Summit 2023: What will be discussed by World Leaders during the mega event ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |