Money managers have cut $300 billion of bearish bets and are now positioned more in line with historic norms — robbing the market of pent-up demand just as the Federal Reserve warns its inflation-fighting battle is far from over.
The triumphant comeback of quant-investing strategies on Wall Street is suddenly on shaky ground as virtually all of 2022’s hottest market trends get derailed in the new year.
Once-hated world stocks, bonds laced with interest-rate risk and even deadbeat crypto coins have just closed out a big new-year rally.
The America First trade that sent money gushing to the US over the past three years is finally starting to lose its shine as market optimism gravitates back to unloved markets outside of the world’s biggest economy.
Professional speculators with billions in bearish trades on the line endured a rough ride after Tuesday’s report on US consumer prices brought the latest sign that the Federal Reserve is making progress in its battle against inflation.
The steady drumbeat of warnings that the American economy is careening toward a recession finally struck a nerve on Wall Street.
Under the surface of one of the quietest weeks on Wall Street all year, some money managers are renewing speculative bets, hoping against hope that a more friendly -- or at least less-hostile -- Fed, is back in their corner.
On the most optimistic corners of Wall Street, promising inflation data over the past week or so suggest the Federal Reserve may accomplish a soft landing after all.
Fast-money quants were effectively forced to buy an estimated $225 billion of stocks and bonds over just two trading sessions, as one of Wall Street’s hottest strategies in the great 2022 bear market shows signs of cracking.
Dip buyers wagering that the era of central-bank hawkishness has peaked got a reminder Wednesday that they are playing a dangerous game.
For years, asset allocators had it easy: Buy the biggest American tech companies and watch the returns rack up. Those days are gone, buried under a crush of central bank rate hikes that are rewriting the playbooks for investment managers across Wall Street.
If Wall Street is right, the big revival in value investing in the post-lockdown era is in danger of falling apart all thanks to the resurgent bond market.
US consumer prices surged to a 40-year high, defying expectations that gains would start to moderate after the Federal Reserve began tightening.
The Bloomberg Dollar Spot Index has trumped all other assets this month, notching a 0.6% advance at a time when stocks and bonds are tumbling. Investors have poured cash into an exchange-traded fund tracking Treasury bills for five weeks, clocking up the biggest inflows since 2020.
Die-hard dip buyers are bracing for even more volatility -- and bigger, more enticing dips -- in the run-up to Christmas.
