Equity market positioning is VERY extended (which is bad from a contrarian perspective).
As shown in the chart below, Asset Managers have built the largest equity futures position in history 🚨🚨🚨 Source: Barchart, Goldman Sachs, CFTC
Yesterday was very painful for diversified 60-40 (equities / bonds) portfolios
Source: Bloomberg
The 60/40 portfolio doesn't fit all macro regimes by Alfonso Peccatiello / The macro compass
The 60/40 portfolio (60% equities / 40% bonds) did work great for 3 of the last 4 decades, and that's because the macro regime was one of predictably low growth and inflation, and Central Banks ready to support markets and economies. But are you sure the next 10 years be the same as the last 10 years?
We are currently in the corporate buyback blackout period for most of the $SPX.
Since 2000, US corporations have bought back $5.5T of stock. This has amounted to more demand than any other market participant, and it’s not even close. 👇 Source: David Marlin, Goldman Sachs
Global equity risk premium are now at the lowest since 2008.
Source: Mike Zaccardi
us households equity allocation is at record high
Source: Goldman Sachs
all-time high my friends !
Source: Not Jerome Powell
Here's the S&P 500 stocks that bought back the most shares in Q4 2023
1 Apple $AAPL: $22.7B 2 Google $GOOGL: $16.2B 3 Raytheon $RTX: $10.3B 4 General Motors $GM: $10B 5 Broadcom $AVGO: $8.3B 6 Facebook $META: $8.2B 7 Exxon Mobil $XOM: $4.7B 8 Microsoft $MSFT: $4b 9 Visa $V: $3.8B 10 Comcast $CMCSA $3.5B source : StockMKTNewz
