With the S&P 500 nearing a chart milestone after a seven-month rally in U.S. stocks, some previously bearish investors are showing signs of conceding defeat.
Both bullish and bearish equity hedge funds bought U.S. stocks for the second week in a row, their biggest purchase since October, according to data compiled by Goldman Sachs Group Inc.’s prime brokerage unit. rice field. It had been on sale for the past five weeks.
Last week, Morgan Stanley’s clients’ net leverage, a measure of their risk appetite that takes into account longs and shorts, hit a year-high.
Bears’ resolve has been shaken this year as the rally in U.S. stocks bucks everything from turmoil in the banking sector to declining corporate earnings to a possible U.S. default. Anxiety about missing out on a rise in the market may have led to a move to review the defensive positions that laid the foundation for the recovery in stock prices since October last year.
“Risk managers at large institutional investors say, ‘We can’t just sit around because the market is going up, we have to get involved,'” said Quincy Crosby, chief global strategist at LPL Financial. I’m saying,” he pointed out. “If we let it pass, the price may be too great. There is optimism that the Fed is over, or almost over, the rate-hiking cycle, and there is also a view that a recession will be pushed aside.” rice field.
Source: Morgan Stanley
The decline in bearish sentiment is not just a U.S. phenomenon. Japan’s TOPIX rose to the highest level since 1990. The STOXX Europe 600 Index is at its highest level in 1 year and 3 months. Net leverage among long-short hedge funds globally is at its strongest level since August, according to JPMorgan Chase & Co. data.
The investment demand pushed the S&P 500 index out of a six-week 140-point range. But it has not yet crossed the much-hyped $4,200 mark. Although it temporarily exceeded 4200 for two consecutive business days until the 19th, the closing price was not able to maintain the high level. The 22nd was also back and forth before and after that.
news-rsf-original-reference paywall">Original title:Hedge Funds Rush to Buy Stocks With S&P 500 on Brink of Breakout(excerpt)
2023-05-23 01:15:15
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