91% of Investors Think US Stocks Are a Big Pile of Overvalued Nonsense: BofA Survey 😱

Imagine this: Over 90% of fund share managers, a new record, apparently believe that the US stock market is more overvalued than a chocolate factory in a town full of sugar addicts, according to a Bank of America (BofA) survey. 🍫💰

As per a new Bloomberg report, 91% of polled fund managers think US stocks are overvalued, the highest rate since 2001, when people still thought Y2K was going to be the end of the world. 🌍💥

BofA’s poll also discovered that investor allocation in foreign markets has climbed to its highest weight since February, signaling a potential shift in sentiment about US markets. It’s like everyone is suddenly thinking, “Maybe we should look elsewhere for our next big investment adventure.” 🗺️🚀

BofA strategist Michael Hartnett warns that the recent stock market rally might be at risk of turning into a bubble, especially given that the bank’s survey showed that cash levels as a percentage of total assets were at 3.9% – a level that has historically signaled an incoming sell-off. It’s like the market is a giant balloon that’s about to pop, and everyone’s holding their breath. 🎈🚫

On the other hand, a net 49% of respondents believe that emerging market (EM) stocks are undervalued, the most since February of 2024. Among the most “crowded trades,” the most popular answers were long the Magnificent 7 stocks, short the dollar, and long gold. It’s like investors are playing a game of financial musical chairs, hoping they don’t get left standing when the music stops. 🎶🪑

Respondents said that the biggest tail risks for markets include a trade war-induced recession, runaway inflation preventing Fed rate cuts, a “disorderly rise” in bond yields, an artificial intelligence (AI) equity bubble, and dollar debasement. It’s a veritable smorgasbord of potential disasters, isn’t it? 🤯💥

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2025-08-11 22:22