Inflation and taper tantrum take over as top risks for the market
- ‘Long tech’ still the most crowded trade, followed by Bitcoin
- 15% of investors think US equities are in a bubble
- 25% say it is an early-stage bull market, 55% say late-stage bull market
- ~43% of investors think 2% 10-year US yields could cause equities correction
- Cash levels up to 4.0% (still low) from 3.8% before
- Allocation to commodities at all-time high
Some interesting insights as to how market sentiment is developing. The low cash levels continue to highlight that investors are still preferring to find places to put their money where possible, with some potentially positioning for a ‘commodities supercycle’.
Other than that, the shift in the top market risk also reaffirms how little emphasis is put on the virus impact and how market participants are now focusing more towards the outlook and economic reopenings more than anything else.