“Long Magnificent 7” again the world’s most crowded trade
Owning large U.S. tech stocks, known as the “Magnificent 7,” is once again the most popular trade among investors, according to Bank of America’s (BofA) latest monthly fund manager survey. The group includes tech giants such as Nvidia and Microsoft.
In August’s survey, 45% of the 169 participants—who manage $413 billion in assets—identified “long Magnificent 7” as the most crowded trade. This comes after strong earnings reports and improved global economic sentiment encouraged investors to return to stocks, News.Az reports, citing Reuters.
Big tech stocks have rebounded sharply since a tariff-driven selloff in April, with the “Magnificent 7” last topping the crowded trade list in March.
Investor sentiment also showed improvement in August, with only 5% of fund managers expecting a hard landing—a severe economic slowdown. A net 14% of respondents were overweight global equities, the highest since February, though this remains below December’s peak of 49%.
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