Bank of America strategists revealed the eight most widely held global stocks on Tuesday, based on the percentage of funds invested in them. The top holdings include TSMC (94%), Microsoft (87%), Samsung Electronics (85%), HDFC Bank (81%), Amazon (77%), Sony (75%), NVIDIA (75%), and ASML (75%).
In July, as global equities rallied by 1.5%, long-only funds increased their active equity exposure by $10.1 billion. Industrials emerged as the favoured sector, particularly in Europe, where $10.5 billion was directed, with $7.8 billion specifically targeting Industrials. This trend aligns with historical patterns, where Industrials often outperform during economic upturns.
Year-to-date, these funds have added $58.4 billion to global equities, with notable increases in Europe, the U.S., Emerging Markets, and APxJ. The shift reflects growing optimism about the global economic cycle, with funds reducing cash levels and reallocating from bonds to equities.
