Bloomberg Dollar Spot Index and USD Bets Leveraged Funds Investors, particularly hedge funds, are showing a strong bullish sentiment towards the U.S. dollar, with positioning now at its highest level since January 2019, while Goldman’s strategists anticipate potential further dollar strength. Image: Bloomberg
ETF Assets Leveraged Long/Short Products Ratio With leveraged long ETFs leaving inverse products in the dust, market’s optimism is so contagious that bears are considering a career change! Image: Bloomberg
Hedge Fund Gross Leverage While the trend shows a reduction in equity exposure from hedge funds ahead of the U.S. election, the outlook post-election appears optimistic, with expectations of a market rebound as investor sentiment improves. Image: Goldman Sachs Global Investment Research
S&P 500 and Leveraged Long vs. Short ETF Volumes The degree of activity in leveraged long vs. short U.S. equity ETFs has experienced a substantial decline as sentiment shifts. Image: Topdown Charts
Hedge Fund Net Leverage Aggregate hedge fund net leverage remains high compared to the average level. Image: Goldman Sachs Global Investment Research
Positions in U.S. Equity Futures by Asset Managers and Leveraged Funds Asset managers and leveraged funds have decreased their long positions in U.S. equity futures since the beginning of the year. Image: J.P. Morgan
U.S. Stock Market Leverage / S&P 500 Market Capitalization U.S. stock market leverage as a percent of S&P 500 market capitalization continues to rise. Is it time for investors to be cautious? Image: Topdown Charts
S&P 500 Index Annualized Operating Leverage, Earnings Per Share Growth Less Sales Growth S&P 500 operating leverage is well above average. Is it sustainable? Image: Morgan Stanley Wealth Management
Hedge Fund Leverage Hedge fund net leverage is close to record levels. It is also high compared to the average level of the last ten years. Image: Morgan Stanley
Operating Leverage Contribution and Earnings Rebound Morgan Stanley expects operating leverage to fuel an earnings rebound, through aggressive cost-cutting measures. Image: Morgan Stanley Research
Hedge Fund Gross / Net Exposure (Leverage) Hedge fund net exposure rose to 75%. This is the highest level in over two years. Image: Goldman Sachs Global Investment Research