Are you ready to swim against the current and make some bold investment decisions? According to the latest global fund manager survey from Bank of America Securities, there are plenty of contrarian trading opportunities for those willing to take a chance.
The most popular trade on Wall Street right now is going long on the “Magnificent Seven” – mega-cap tech stocks that investors are extremely bullish on. But with so many investors flocking to this trade, some are starting to look for alternatives that could offer even greater potential returns.
One contrarian trade that Bank of America has identified is going long on bonds. As the consensus seems to be leaning towards a soft landing for the economy, a recession could actually cause a rally in the bond market as central banks lower rates. This could prove to be a profitable move for those willing to take the risk.
Another contrarian trade to consider is going long on oil. This could serve as a hedge against geopolitical risk and could pay off handsomely if tensions escalate in certain regions.
When it comes to where investors think the next big winners will be, the survey participants pointed to U.S. stocks, government bonds, global stocks, corporate bonds, and gold and commodities. These sectors could see a reallocation of the over $6 trillion currently invested in money market funds.
As an investor, it’s important to consider all your options and not just follow the crowd. By exploring contrarian trades and thinking outside the box, you could potentially uncover hidden gems that could lead to significant gains in your investment portfolio. Stay tuned to Extreme Investor Network for more unique insights and opportunities in the world of investing.