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. BAML found that while a record 48% of respondents believed stocks are currently overvalued, it hasn't prevented them from chasing those assets. Investors also reportedly believe that riskier positions are “crowded" trades, indicating a rush to the exits is possible in the near future.