a survey conducted by bank of america corp revealed fund managers pessimism reached the highest level in 2023 as investors increased cash balances and became more pessimistic about growth long big tech 32 short banks 22 and short the us dollar 16 were found to be the most crowded trades in the survey net 65 of investors polled by bank of america forecast a poorer economy in 2023 up from 63 in april with net 47 of investors saying recession is likely in the next 12 months unchanged from april the end of the fed rate hiking cycle is predicted by a sizeable majority of investors at 61 but only 43 believe the fed will start hiking by january 2024 regarding the debtceiling negotiation a very large majority 71 of managers expect the us debt ceiling will be raised by the deadline 5 contrarian trades emerging from the bank of americas global fund manager survey 1 long real estate investment trusts reits   investors are most underweight in the real estate sector since july 2009 an exchangetraded fund tracking reits is the real estate select sector spdr fund xlre short us banks is the secondbiggest crowded trade among investors surveyed by bank of america investors have also been focusing on growth against value stocks since july 2020 two etfs to express this view are the spdr sp bank etf kbe and the ishares core sp value etf iusv bond allocation increased 4 ppt monthovermonth to a net 14 overweight the highest overweight since march 2009 allocation to technology jumped 14ppt monthly to net 16 overweight the highest level since december 2021 long big tech is considered the most crowded trade in the bank of america survey the proshares short qqq psq is an exchangetraded fund that reflects this contrarian view shorting the us dollar is the third mostcrowded trade among fund manager investors polled by bank of america the invesco db usd index bullish fund etf uup provides exposure to the us dollar read also fed officials curb investor enthusiasm i cant say were at the level to hold