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Investing.com -- Investor sentiment has fallen to its lowest level in over three months, according to Deutsche Bank, with bearish responses climbing to near the top of their historic range.
Deutsche Bank strategists, including Parag Thatte, reported that bearish responses have jumped to the 92nd percentile of their historic range, while bullish replies dropped to the 24th percentile. Neutral responses slightly increased to the 20th percentile, remaining well below average.
Despite the negative sentiment, aggregate equity positioning edged higher last week, with both systematic and discretionary investors slightly increasing their exposure. The strategists noted that overall positioning is not yet elevated, as discretionary investors have maintained neutral positions since early July.
The report highlighted that volatility control funds have raised their equity allocation close to historical maximums, while Commodity Trading Advisors (CTAs) have increased their overall equity long positions.
Significant inflows were observed across multiple asset classes, including $26.4 billion into equities, $25.9 billion into bonds, and $33 billion into money market funds.
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