Global investors ending 2021 'risk-on' - BofA

MILAN - Investors are heading towards the end of the year in a "risk-on" mood, having reduced cash allocations and lifted their overweight position on U.S. stocks to the highest since August 2013, BofA Securities' monthly fund manager survey showed.

Inflation remains the biggest tail risk for markets but a majority of 61% believes it is transitory and expect the Federal Reserve to remain "well behind the curve" in setting its monetary policy, the U.S. investment bank added on Tuesday.

Cash allocations fell to 4.4% in November from 4.7% in the previous survey last month. It also said "long Tech Stocks" was the most crowded trade at 37% followed by Bitcoin at 21% which a 59% majority thinks is in a bubble.