Despite the lift in risk-taking, a record-high net 48% of respondents also said stocks — the epitome of a risk asset — were currently overvalued. The latest Fund Manager survey by Bank of America Merrill Lynch (BAML) has concluded that an increase in risk-taking represents a sign of “irrational exuberance” among investors. In the survey, which was conducted from June 1 to July 31, investors were asked whether they believed there is more risk than reward for investing in stocks and bonds. Investors also reportedly believe that riskier positions are “crowded" trades, indicating a rush to the exits is possible in the near future.
The latest Fund Manager survey by Bank of America Merrill Lynch (BAML) has concluded that an increase in risk-taking represents a sign of “irrational exuberance” among investors. In the survey, which was conducted from June 1 to July 31, investors were asked whether they believed there is more risk than reward for investing in stocks and bonds. Investors also reportedly believe that riskier positions are “crowded" trades, indicating a rush to the exits is possible in the near future.