Hedge funds are playing with fire as they all cram into the same stocks — and their behavior could make the next market crash even worse

— the last place an investor wants to be is piled into a crowded position. To the extent that hedge funds are still loaded up on the same popular names, the next downturn could be made worse.

With all of that established, it's worth noting that doubling down on proven winners can be a lucrative strategy when everything is going swimmingly in the market. After all, hedge funds wouldn't be cramming into those stocks with abandon if they weren't offering strong returns. Still, it would seem to be a prudent strategy for investors insistent upon staying invested in crowded stocks to seek some downside hedges. At the very least, they could help offset the damage once the tables turn on those high-density trades.

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Hedge funds were still loading up on certain stocks as the market tanked in late 2018. These are their 9 new favorites.Hedge funds continued to load up on certain stocks as the market plunged in 2018. Goldman Sachs names the stocks they bought.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

When markets turn choppy, these stocks will be the first ones hedge funds bail onJefferies' equity strategist Steven DeSanctis warned investors of the darling stocks the most active funds own. PPL sales they will get hurt There have recently been several Red Flags of a slowing Economy. Trump & the Republicans have over cooked the Golden Goose Obama left them. 2008 Bush a Republican did the same thing. Read this report & prepare to rebalance your portfolio.
La source: CNBC - 🏆 12. / 72 Lire la suite »