NEW YORK (Reuters) - Too many investors have piled into U.S. technology stocks, making the sector the most "crowded trade" of all time and difficult to unwind, while a tech bubble is the biggest risk after an expected second wave from the COVID-19 pandemic, a BofA Securities survey of fund managers said on Tuesday.
Institutional investors are "rotating" into cyclical stocks and not "chasing" momentum since the rally from March lows, while a majority now say there's a new bull market compared to one-quarter in May, the survey found.
A credible COVID-19 vaccine will most likely trigger higher bond yields, 41% of respondents said in the survey conducted Sept. 3 through Sept. 10, while 37% said they expect a vaccine announcement in the first quarter of 2021.
There were 199 respondents to the global survey and 90 who responded to a regional survey, Bank of America said.
(Reporting by Herbert Lash)