Biggest perceived market tail risks

The Bank of America’s most recent Global Fund Manager Survey shows that the biggest perceived market tail risks are in inflation (29%) and a “taper tantrum” (26%). On sector level the survey shows that fund managers have the highest overweight in the IT sector, although technology stocks are perceived as the most crowded trade. The most unloved sector is Utilities, despite the sector paying the highest dividend yields. Although markets have become a bit frothy, only 15% of the fund managers see an asset bubble as a major tail risk.