Fund Managers Shift from Tech Stocks to Gold as ’Most Crowded Trade’

Institutional investors are rotating out of tech stocks and into gold, according to Bank of America's October fund manager survey. A record 43% now view 'long gold' as the most crowded trade, overtaking the 'Magnificent 7' tech stocks at 39%. This marks a dramatic reversal from September, when just 25% favored Gold compared to 42% for big tech.

The precious metal has surged 14.3% over the past month while tech stocks have dipped 0.5%. JPMorgan characterizes this MOVE as a 'debasement trade'—a flight to safety amid inflation concerns and market volatility. Gold's resurgence coincides with growing anxiety about an AI stock bubble, now cited by one-third of managers as the top market risk.

Despite these headwinds, capital continues flowing into markets. The rapid shift in sentiment underscores how macroeconomic uncertainties are reshaping institutional portfolios. As one asset manager noted, 'When the tide turns, it turns fast—gold is having its moment while tech takes a breather.'