The Market Has Become One Giant Lopsided TradeStock-Markets / Financial Markets 2017 Jan 11, 2017 - 03:55 AM GMT
The market has become one giant trade.
That trade is:
- Long US stocks
- Long the $USD
- Short Treasuries
- Short Gold
In terms of speculative positioning, as Hedgopia has noted hedge funds are net positioned in precisely these positions with the exception of Gold (net long 96.6 futures contracts).
Moreover, investment advisors are piling their clients into precisely these positions.
H/T Josh Brown
So Hedge Funds and investment advisors are positioning their clients in precisely the same trades (except Gold). All we need now are individual investors to follow suit of their own volition and we’ve got one gigantic lopsided market.
According to Trimtabs since the Presidential election on November 8th, individual investors have put $93 BILLION into stock-based ETFs.
This is more than 150% of the money investors put into those same ETFs during the ENTIRE year of 2015.
This kind of extreme buying is only seen during market tops. With investors now “all in” who is left to buy?
Stocks are already broadcasting what’s coming next.
Another Crisis is brewing… the time to prepare is now.
If you’ve yet to take action to prepare for this, we offer a FREE investment report called the Prepare and Profit From the Next Financial Crisis that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.
We made 1,000 copies available for FREE the general public
As we write this, there are fewer than 19 left.
To pick up yours, swing by….
Phoenix Capital Research
Graham also writes Private Wealth Advisory, a monthly investment advisory focusing on the most lucrative investment opportunities the financial markets have to offer. Graham understands the big picture from both a macro-economic and capital in/outflow perspective. He translates his understanding into finding trends and undervalued investment opportunities months before the markets catch on: the Private Wealth Advisory portfolio has outperformed the S&P 500 three of the last five years, including a 7% return in 2008 vs. a 37% loss for the S&P 500.
Previously, Graham worked as a Senior Financial Analyst covering global markets for several investment firms in the Mid-Atlantic region. He’s lived and performed research in Europe, Asia, the Middle East, and the United States.
© 2016 Copyright Graham Summers - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
Graham Summers Archive
© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.