Positioning and sentiment remain muted across the board. Hedge fund leverage is at cycle lows, CTAs and systematics are neutral, and there's over $7 trillion parked in money markets. With so little exuberance, it’s hard to get truly bearish from here. Let's examine the latest positioning and sentiment data.
All quiet on the sentiment front:
Four key technical/sentiment indicators do not really show any signal what so ever. Absolutely not stretched.
Sentiment stuck at "serious":
Can someone check in on the GS US Equity Sentiment Indicator of investor positioning. Is it stuck? Did they forget to press update?
Relatively quiet:
"In terms of flows, activity across the fund community was relatively quiet last week with volumes in-line with 12M averages and net activity flat across most regions. US Equity L/S net leverage declined by 3% over the week to end at 47%. This is the level that nets were at just two weeks ago before the China tariff pause and represents the 17th % tile over the last year." (MS PB)
As low as 12th percentile:
Net leverage at 30th percentile for overall hedge funds and even as low as 12th for long/short fundamental funds.
>$7 trillion on the side-lines:
There is a record $7.24 trillion in money market funds right now.
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