Chip index's climb is giving fund managers a fear of heights, Bank of America finds

Warning signals from inflation and the policy outlook are prompting caution, but fund managers remain reluctant to cut exposure. Michael Hartnett expects some risk to be taken off the table over the quieter summer months, suggesting a modest defensive shift rather than a major market reset.

Analysis

Warning signals from inflation and the policy outlook are prompting caution, but fund managers remain reluctant to cut exposure. Michael Hartnett expects some risk to be taken off the table over the quieter summer months, suggesting a modest defensive shift rather than a major market reset.