Active managers have cited “crowding” in the leading stocks of 2023 as a key risk for 2024, with mega-cap technology the most crowded.
According to Bank of America research, the risk is that such stocks - with the largest seven responsible for 60% of S&P 500 gains last year - may be used as a "source of funds" if a hard landing is avoided. Institutional fixed income investors set to take on greater risk in 2024 Respondents to the BofA survey claimed the broadening of market leadership is now a consensus, meaning the trading activity in January is likely to heavily feature technology, media and communications mega-caps. The survey also revealed that the best-performing funds of 2023 held long mega-caps, with techno...
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