Hedge funds were caught offside by the US stock market rally:
The US hedge fund long/short ratio has fallen below 2.0, even lower than during the 2025 April sell-off. This is despite equities trading near record highs. This comes as last week saw the largest net sales by hedge funds year-to-date, driven by long sales concentrated in US Tech Hardware and short additions focused on US Software. By comparison, the ratio was as high as 2.5 in December last year. Furthermore, retail investors recorded their largest weekly outflows year-to-date, driven by semiconductors, according to UBS. Source: UBS, Global Markets Investor
US Treasury just did the largest Treasury buyback in HISTORY.
Treasury bought back $15,000,000,000 of its own debt to improve liquidity. Source: Bull Theory
Trump accuses Iran of violating the ceasefire agreement over the Strait of Hormuz.
Six hours ago Trump warned Iran to stop charging fees to tankers or face consequences. 1 hour later he escalated, saying "that is not the agreement we have." Source: TS
S&P 500 YTD total return: +0.0%
After all that ... it’s like nothing ever happened. Source: Charlie Bilello
Iran War Sees Lowest U.S. Approval Rating Ever
Source: Voronoi
US budget deficits likely “grow to ~7% of GDP for 2026.
Even if the amount of the supplemental request were halved to $100bn, deficits could grow to ~6.6% ..” Source: Carl Quintanilla
Will the 25th Amendment be used during Trump's Presidency?
*The 25th Amendment to the U.S. Constitution, ratified in 1967, establishes clear procedures for presidential succession and for temporarily transferring power to the Vice President when the President is unable to discharge the duties of the office, either voluntarily (Section 3) or involuntarily via the Vice President and Cabinet (Section 4). Source: *Walter Bloomberg
The new deadline from the US President: 8PM ET on Tuesday for a deal before "“Every bridge in Iran will be decimated" by 12 midnight ET.
Source: David Ingles
