It took a while, but investors now appear to be overweight U.S. equities, according to analysts at Deutsche Bank.
For some market watchers, that might underline concerns about the threat of a near-term pullback after five consecutive weekly gains for the S&P 500 that have propelled the large-cap benchmark back into bull-market territory. What’s the driver? Systematic trading strategies, also known as algorithmic or automatic trading systems, had pushed positioning higher over the first five months of the year form very underweight levels, Reid said, but the shift over the last two weeks was driven by discretionary investors.
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