The world’s top investors are becoming more confident that markets won’t be hit by recession in 2024, with an overwhelming majority now backing the likelihood of a “soft landing” — or even “no landing” — for the U.S. economy.
Global fund managers, polled each month by Bank of America, said in January’s survey that the most crowded trade was “long Magnificent Seven” — that means backing further gains for the tech giants Alphabet Inc (NASDAQ:GOOGL), Amazon.com Inc (NASDAQ:AMZN), Apple Inc (NASDAQ:AAPL), Meta Platforms Inc (NASDAQ:META), Microsoft Corp (NASDAQ:MSFT), Nvidia Inc (NASDAQ:NVDA) and Tesla Inc (NASDAQ:TSLA).
Despite it being a crowded trade, fund managers believed being long on the Mag7 stocks was still the among the best ways to play this year’s expected rate cuts by the Federal Reserve.
Overweight U.S. Equities
Investors trimmed their global equity portfolios, but were at their highest overweight position ...