Bank of America: Investors currently consider shorting the U.S. dollar to be the most crowded trade at the moment

Investors believe shorting the dollar is the most crowded trade right now, with about 34 per cent of respondents, according to Bank of America's July Global Fund Managers Survey. This is the first time in the survey's history that shorting the dollar has replaced long gold as the most crowded trade. Investors are the most underweight in the dollar, along with US equities, energy and consumer staples stocks. According to the survey, 47% of investors believe the dollar is overvalued, down from 61% in the June survey. In addition, 14% of investors believe that a plunge in the dollar due to capital outflows is the third largest tail risk (i.e. a low-probability event).