Bank of America recently revealed the top 10 globally most-held stocks, dominated by technology companies, emphasizing their widespread presence in investment portfolios. The list includes:
- TSMC (95% of funds)
- Microsoft and Arm Holdings (88%)
- Samsung Electronics (83%)
- HDFC Bank and Tencent Holdings (79%)
- Amazon, NVIDIA, and ASML (77%)
- Keyence (76%)
In 2024, long-only funds added $40 billion in equity exposure, with US Industrials seeing the most significant increases. However, overweight positions underperformed in most regions, except the US. Active exposure to Tech increased in Asia and Emerging Markets, while exposure to Financials declined.
Looking into 2025, BofA anticipates strong opportunities in Financials and Tech based on their Triple Momentum analysis.
A recent Fund Manager Survey (FMS) indicates a shift in sentiment:
- Equities: Strong interest but down from December highs.
- US Dollar: Favored, while bearish views dominate for bonds, commodities, and cash.
- Regional Rotation: US equity exposure dropped sharply, while Eurozone stocks saw their largest exposure increase in 25 years, moving to a slight overweight.
Cash allocations fell to their lowest since June 2021, triggering a “sell” signal, often linked to weaker equity performance in subsequent months.
