inflation is likely temporary and trades built around it being longer term are now the most overdone in the market according to bank of americas june global fund manager survey the closely watched gauge of professional investors indicates that wall street is in line with the federal reserves view that recent price pressures will lighten up as the year goes on and eventually recede to normal levels some 73 of respondents said they see inflation as transitory while just 23 say it is permanent the survey covers 224 panelists with 667 billion under management and it ran june 4june 10 the poll covers a gamut of investor issues from where the economy and markets are heading to how much cash portfolio managers are holding and which trades they see as most overdone on that last point investors view commodities as the mostcrowded trade replacing last months leader bitcoin commodities generally attract big cash when inflation fears are running high and the most recent readings have shown peaks not seen in well over a decade the most recent indication came tuesday when prices on products and services that companies use rose 66 over the past year the biggest gain since the labor department started keeping track in august 2010 even though investors largely agree with the feds characterization that the inflation burst will pass they still see the central bank soon taking the first steps to tightening policy respondents see the fed likely to begin talk of tapering its 120 billion of monthly bond purchases in the coming months sixtythree percent expect a signal in august or september with 38 seeing it coming at the annual jackson hole summit in august and 25 expecting it to start at the september federal open market committee meeting the move to reduce bond purchases however anticipated could generate a negative market reaction survey respondents rated a taper tantrum in the bond market that is a sharp uptick in yields as the biggest tail risk or unlikely event that could cause substantial damage bond yields move inversely to prices investors generally see the market rally continuing in fact theyve cut cash levels down to 39 which bank of america says is a contrarian sell signal at the same time fund managers have reduced bond allocations to a threeyear low