What Catalyst Will Start The Next Bear Market: Here Is Wall Street’s Response

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In the latest monthly Fund Managers Survey conducted by Bank of America, virtually none of the biggest “tail risks” noted by Wall Street’s smart money (the 175 respondents to the survey collectively run a total of $543 billion) in February was touched upon in January, suggesting Wall Street has a whole new set of things that keep it up at night.
As the following chart shows, when asked what the biggest ‘tail risks’ are this month, 36% responded European elections raising disintegration risk; 32% said Trade war; while only 13% said “Crash in global bond markets.”

On the other hand, another notable, recurding question: “what do you think is the most crowded trade”, lead to similar responses as those seen last month: a vast majority 41% said being long the US Dollar, 14% said shorting government bonds (a modest increase from the prior month), and only 13% said being long US/EU corporate bonds.

This post was published at Zero Hedge on Feb 14, 2017.