Bank of America: Investors currently consider short selling the US dollar to be the most crowded trading activity

According to a report by Golden Finance, Bank of America's global fund manager survey in July showed that investors believe short selling the US dollar is currently the most crowded trade, with about 34% of respondents holding this view. This is the first time in the history of the survey that short selling the US dollar has replaced long selling gold as the most crowded trade. Investors have the lowest holdings of the US dollar, along with stocks in the US stock, energy, and essential consumer goods sectors. According to the survey, 47% of investors believe that the US dollar is overvalued, a decrease from the 61% surveyed in June. In addition, 14% of investors believe that a sharp drop in the US dollar due to capital outflows is the third largest tail risk (i.e., an event with a lower probability of occurrence).