“Long commodities” has become the most crowded trade in the world, according to a monthly survey of fund managers conducted by Bank of America.
Commodities, such as copper, gold, and oil, have been rallying hard because of strong demand after a major pandemic-driven recession. The fact that commodity prices are soaring against the backdrop of massive government spending is also widely seen as a harbinger of future inflation.
“Long Bitcoin” now comes in second place after topping the list last month. The previous poll was conveniently unveiled right on the cusp of a massive sell-off that took place on May 19.
Alex DovbnyaWhile it was the case last month, becoming the most crowded trade doesn’t necessarily signal the market top. For instance, Bitcoin also came on top of the January BofA survey, but it went on to soar higher in the following months.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Arman Shirinyan
Dan Burgin
Vladislav Sopov