US Dollar Still Viewed As Most Crowded Trade

Bank of America Merrill Lynch released its Fund Manager Survey today which had some interesting responses. The month to month positioning changes saw investors rotate out of industrials, utilities and discretionary and into emerging markets, the Eurozone and materials, see below:

Also 41% of respondents view the US dollar as the most crowded position slightly less than the January survey. The newest additions to the most crowded list this month are banks, US small caps and short the Chinese Renminbi.

Lastly with all the talk around potential trade wars BAML asked investors what the best investment in a protectionist environment was. About 34% of respondents believe gold is the best asset to own in such an environment.

The results above are based on BAML’s survey of 210 investors with $632 billion in assets under management between February 3rd and February 9th.