Tuesday, 19 January, 2021
SENTIMENT: some snippets from Jan BAML FMS:
SENTIMENT: some snippets from Jan BAML FMS:
– cash levels at the lowest level since March 2013
– Allocation to stocks is at 2-year-high
– allocation to stocks and commodities is at 10-year-high
– record overweight in EM
– record OW in small vs large cap stocks
– Expectations for global EPS, inflation, higher bond yields at or close to record highs
– U.K. remains “most unloved region” but the underweight was further reduced to net 15%
– Long Bitcoin surges to become the most crowded trade, followed by long tech and short U.S. Dollar
– jump in exposure to materials, energy, banks, while sector allocation to tech is cut to lowest since Dec. 2018
– Correction catalysts are peak growth on vaccine, virus or China, or peak liquidity on higher dollar and rates
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