What Stock Sectors are the Smart (Big) Money Investing In?
There is a saying to follow the smart money. With the performance of hedge funds over the past decade relative to the S&P 500 some may think that isn't the smart money.
I'm smart enough to know they are still worth paying attention to because the sheer size of the positions they put on impact individual stocks and sectors.
Bank of America Merrill Lynch Fund Manager Survey
This survey gives us insight into what hedge fund managers are investing in, the latest survey showed money moving toward utilities, consumer staples and healthcare and out of energy and materials.
In addition to the movement within stock sectors there was an increase in bond holdings and a reduction in stock holdings.
This is what I recall from my view of the report which is proprietary/subscriber based.
That's interesting @scaredcatguide and I found it kind of odd that they invested more money into bonds and away from materials like Gold and Silver.
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Yeah....I don't think the large funds ever get big into the metals. Well, atleast not the majority of them it seems to be a "specialized" trade.
Makes sense that they are moving away from energy, energy received so much hype and formed a little bubble, it's time to take profit and move to other things while the place calms down and they can scale back in...
I've seen some other big investors like Jim Breyer investing in healthcare, especially AI and healthcare, might be time to get some money in
Aging baby boomer population and advances in in tech make those fields desirable.
Right now the sectors to play are Real Estate and Utilities.
Be selective with those REITs. Healthcare related reits are the safer play in my opinion