Bank of America: Investors currently believe that shorting the U.S. dollar is the most crowded trade right now

On July 15, according to Jinshi Data, Bank of America's July global fund manager survey showed that investors believe shorting the dollar is the most crowded trade, with approximately 34% of respondents holding this view. This is the first time in the history of the survey that shorting the dollar has replaced going long on gold as the most crowded trade. Investors are most underweight on the dollar, as well as U.S. stocks, energy, and consumer staples stocks. The survey shows that 47% of investors believe the dollar is overvalued, down from 61% in the June survey. In addition, 14% of investors believe that a dollar crash due to capital outflows is the third-largest tail risk (i.e., a low-probability event). [TechFlow]