Tech holds the crown, but defensive positioning grows: BofA survey
Economic Times 2 hrs ago·19 Aug 2026, 12:03 pm
Global investors continue to favor technology stocks, but a recent Bank of America survey reveals a subtle shift in sentiment. While tech remains the top sector choice, a growing number of Asia fund managers are adopting a defensive stance. This suggests that while the long-term growth story for technology remains intact, investors are becoming more cautious about short-term volatility.
This shift in strategy is driven by a desire to hedge against potential downside risks. Fund managers are increasingly looking to value, cyclical, and defensive sectors to balance their portfolios. This move highlights a growing concern that the rapid rise in Artificial Intelligence (AI) valuations might be outpacing current earnings, prompting a search for safer havens.
For investors, this trend signals a move toward diversification. While the tech sector is expected to remain a leader, the increased hedging activity suggests that a portion of capital is moving toward more stable assets. Market watchers will now focus on whether this defensive positioning is a temporary reaction to volatility or a sign of a broader market rotation.
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