Undercrowded trade

We take note that investors globally have “parked” more money than ever in bonds and cash over the last years. At the same time, money has been taken out of global equities, especially since the recession/inflation narrative took hold over the last year. With such a positioning, the slightest change in the economic environment towards the better could trigger substantial inflows into equities and an equity rally. This is certainly not a fundamental argument to put more money into equities, however it shows that equities are the undercrowded trade.