Wow Hedgefunds are smashing the buy button on Asian stocks.
These are the biggest inflows in years. 🤑 International markets continue to see a lot of interest. Markets & Mayhem @Mayhem4Markets Via @GoldmanSachs
AI FEARS OVERDONE IN SOFTWARE
JPMORGAN: AI FEARS OVERDONE IN SOFTWARE JPMorgan says the selloff in software stocks is overblown, driven by unrealistic fears of near-term AI disruption. Strategists recommend rotating back into high-quality, AI-resilient names. They cite strong fundamentals, high switching costs, and positive earnings trends, naming Microsoft and CrowdStrike as beneficiaries. With 2026 earnings growth forecast near 17%, the team sees a rebound opportunity. Source: *Walter Bloomberg @DeItaone
Another day, another fresh high in skew.
The year-to-date rise is becoming meaningful, with the crowd long and paying up for downside protection. Rising markets alongside rising skew are a combo worth watching closely, and looks pretty similar to last year’s setup... Source; TME
What if?
Source: Jeff Weniger @JeffWeniger
The Chinese Yuan has strengthened to 6.91 against the US Dollar, the strongest since May 2023.
The Yuan is now on track for its 7th consecutive monthly gain, the longest streak since 2020-2021, up+5% since 2025. It has also been the 3rd-best-performing currency in Asia since September. The most recent move comes after Chinese regulators advised banks to limit purchases of US Treasuries and instructed those with high exposure to pare down positions. China is benefiting from the US Dollar's weakness. Source: The Kobeissi Letter, Bloomberg
🚨There is BARELY any cash on the sidelines:
Cash levels in US equity funds fell to 1.1%, an ALL-TIME LOW. This is HALF the percentage seen just 3 years ago. US equity mutual fund cash balances as a % of total assets have been in a downtrend for the last 18 years. Nominally, cash and liquid assets fell to $135 billion, the lowest since 2013. Almost every equity fund is ALL-IN on US stocks. Source: Global Markets Investor, Goldman Sachs
GS: "We forecast 120 IPOs this year and $160 billion in gross IPO proceeds in 2026".
Source: TME
January 2026 best and worst performers 👇
🟢 Commodities is the best performing asset class YTD: WTI Crude is up +14.3%, Silver +11.65% and Gold +8,8% 🟢Global equity markets gained +3.0%. EM equities lead (+8.9%) ahead of Japan (+6.6%), UK (+5.2%), China (+4.7%) and Euro area (+4.1%). As it was the case in 2025, US equities underperform (+1.5%) as Mag 7 are negative YTD 🟢Credit posted modest gains while US Treasuries are slightly down 🔴 Dollar index is down -1.2% 🔴 Bitcoin and Ethereum are the worst performers, down double-digit Source: Augur Infinity
