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Investing.com -- Deutsche Bank (ETR:DBKGn) has indicated that overall equity positioning is slightly underweight, having seen a slight increase in the past week. The bank also noted that discretionary positioning is nearing a neutral stance as the market anticipates the April 2 tariff announcements.
The underweight positioning is widespread but less pronounced in the areas of mega-cap growth and technology, according to strategists, including Parag Thatte. They suggest that a fall in positioning to the lowest levels seen in historical data, akin to the drop observed during the previous trade war, could potentially bring the S&P 500 down to 5250.
Discretionary investor positioning is currently in the 47th percentile, having risen slightly over the past week. This positioning is considered to be near neutral due to the ongoing uncertainty and market volatility.
The strategists have observed a contrast between weakening survey data and still robust hard data. They view the upcoming tariff announcements on April 2 as presenting a risk that could swing in either direction.
The positioning of systematic strategies remains notably underweight, sitting in the 24th percentile. This is due to ongoing high levels of volatility and weakening trend signals.
The strategists also noted that strong inflows have been very supportive of the equity market. March is typically a strong month for equity inflows, driven by tax refunds, but the seasonality is expected to become less favorable moving forward.
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