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AI Bubble Tops Tail-Risk List as BofA Survey Finds Crowded Gold Longs and Record Dollar Shorts

BofA's latest Fund Manager Survey highlights concentrated bets that leave markets vulnerable.

Overview

  • Global managers remain highly bullish but say near-term upside in the first quarter looks harder to achieve.
  • Positioning is elevated with a commodity overweight at the highest since May 2022 and an equity overweight at the highest since December 2024.
  • Earnings optimism is the strongest since August 2021 even as investors report a new high in perceived corporate overinvestment.
  • Long gold is identified as the most crowded trade while record shorts leave investors the most dollar-bearish since 2012.
  • The closely watched survey is often read contrarily, with coverage cautioning that extreme dollar bearishness could unwind and that the greenback may rebound in 2026.