Bitcoin is the most crowded trade right now, a new CNBC survey shows

Published Wed, Mar 31 20211:36 PM EDT

Bitcoin is the most crowded trade right now, according to a new CNBC survey. CNBC polled more than 100 chief investment officers, equity strategists, portfolio managers and CNBC contributors who manage money about where they stood on different trades. The quarterly survey was conducted from March 22 to March 30. More than 40% of the survey respondents believe bitcoin has the most investor interest right now, while 32% believe Big Tech is the hottest trade. When an investment gets too crowded, it has a tendency to reverse its course. Bitcoin crossed a record high of $60,000 earlier this month as major companies and financial institutions adopt cryptocurrencies. The world's biggest cryptocurrency last traded around $59,280 on Wednesday, more than doubling where it started 2021. Goldman Sachs is close to offering its first investment vehicles for bitcoin and other digital assets to clients of its private wealth management group, CNBC reported Wednesday. Shunning defensive stocks Survey participants also shunned defensive stocks. In particular, they think investors should avoid utilities, consumer staples and real estate. These sectors are considered more stable income plays as many of the stocks in the groups pay decent dividends and tend to have less volatility. So far, the S & P 500 utilities and consumer staples sectors have risen only about 1% each this year, while real estate has gained about 8%. For investors looking for growth, survey respondents said they should focus on technology, financials and consumer discretionary. While financials aren't typical growth stocks, the sector is expected to outperform this year given the tailwinds of rising interest rates as well as the economic reopening. Banks benefit from higher interest rates as their net interest margin increases. Further, banks' profits rise as the spread widens on the rate they borrow at in the short term and the rate at which they lend in the long term. The S & P 500 financials sector has jumped more than 15% this year, making it the second-best-performing sector next to energy.

Dado Ruvic | Reuters

Bitcoin is the most crowded trade right now, according to a new CNBC survey.

CNBC polled more than 100 chief investment officers, equity strategists, portfolio managers and CNBC contributors who manage money about where they stood on different trades. The quarterly survey was conducted from March 22 to March 30.