Jan 22, 2021 - Economy & Business

Fears about a market bubble creep up on investor worry list

Data: BofA Global Research; Note: Percentage of investors that cite respective events as fears; Chart: Axios Visuals
Data: BofA Global Research; Note: Percentage of investors that cite respective events as fears; Chart: Axios Visuals

Fears of an asset bubble are gaining ground among investors, Bank of America surveys out this week show.

Why it matters: The coronavirus is still the top fear, followed by rising interest rates. But there was the biggest jump among investors that mentioned "asset bubble" as a concern.

By the numbers: 48% of credit investors cited it as a worry this month, compared to the 18% who said so in November (the last time BofA conducted this survey).

  • Inflation saw the second-biggest jump: it's mentioned by 42% of those surveyed, up from 17%.

On the equities side: Fund managers said in a separate BofA survey the COVID-19 vaccine rollout was the biggest market risk. Others include a bond market "tantrum," a Wall Street bubble and inflation.

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