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

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[Bank of America: Investors Currently See Shorting the Dollar as the Most Crowded Trade] Bank of America's July Global Fund Manager Survey shows that investors believe shorting the dollar is the most crowded trade at present, with about 34% of respondents holding this view. This marks 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 in their dollar holdings, while also being underweight in U.S. stocks, energy, and consumer staples zone stocks. The survey indicates that 47% of investors believe the dollar is overvalued, down from 61% in the June survey. Additionally, 14% of investors believe that the dollar's big dump due to capital outflows is the third largest tail risk (i.e., an event with a low probability of occurring).

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