, including buyouts to private equity firms, acquisitions, and share repurchases, is acknowledged as a significant factor contributing to the rise in equity prices. This should continue in 2020, but at an anticipated rate in the $500 billion range, or around half of the 2019 total.There has been less attention paid to how shifting allocations within hedge funds may be contributing to the all-time stock market records. With the average US equity hedge fund returning 15.
If the hedge fund community closes 5% to 10% of its estimated shorts and increases its long side by a similar degree, this would translate into more than $150 billion of incremental buying power. If that magnitude of move is already underway, it could be propelling the price of some top performing tech/communications stocks including Apple, Facebook, Netflix, Google, Microsoft and Salesforce.com.
Of course, there is the wild card position, occupied by quant funds, multi-strategy funds, and high frequency traders, representing an estimated. It's impossible to know how much these groups are influencing each new all-time record, but it would be foolish to dismiss their impact. Obviously, it's not easy to determine the source of buyers in this "new record" environment and how long they intend to stay. The thought of managers playing catch-up is not my most comforting image. We would prefer thinking about hearing strong earnings guidance over the next few weeks to provide needed support should fickle possible buyers shift course again.
Karen Firestone is chairman, CEO, and co-founder of Aureus Asset Management, an investment firm dedicated to providing contemporary asset management to families, individuals and institutions.
Computers
Isn't that Mnuchin's orders?
e Wknow it’s “Not QE, QE.” “ESF” And the “Plunge Protection Team”
The Pension Funds who else? They are struggling for yields in the Bond Market, and so are taking every risk in the book to get the yield for the retired granpa's.
HFM, ETFs, Institutions etc
Hard to keep up with the $SPX when it’s return is comparable to a growth company!
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bet Cramer knows VlanciPictures
True story
It’s institutional capital realizing they can’t produce any growth holding bonds with microscopic yields.
Trump's friends are trading both sides of this, but bringing it up to help him win reelection. They realize they can then rob, pillage, steal, kill and pollute for another 4 years and probably get another tax cut while murderous gangster thugs like you lie for them
Z
But I’m sure it’ll keep going up at this rate...until it doesn’t. Lessons learned in 2008.
Hedgefunds(chosen ones by the fed,mnuchin) Do you know how many macro funds went bankrupt lately globally? You’d be surprised.
I think you are not putting enough weight, in the futures market, and overseas funds. Also you didn’t pay enough attention to the quants, that’s where your research should be, that’s the black box that is moving markets.
I would be curious how much is AI day trading? A lot of artificial market pumping and then getting out as soon as it sees the slow down
Just curious how much might be foreign flight capital, esp from the Chinese? Any way of tracking foreign fund flows into the US markets?
The Fed.
It's the us and Chinese government trying to create an illusion the masses think coronavirus is psychologically fine to the markets
it has been claimed that the individual investor or potential investor has stayed away from the market. Lot's of money there. Are they coming in? Probably not a good sign if that is the case. Who is putting money into bonds now?
You can do better than this. Check below. Source NorthmanTrader
Basically “we don’t know” 🤷🏽♂️
A long only hedge fund, isnt that called a mutual fund?
Implying its short covering and not mentioning short interest is rather irresponsible
This brings the topic of too big to fail coming to play again. These funds will just recklessly pump up the stocks and rotate among themselves, earning the managers extravagant bonuses and when the music stops, the tax payers again pick up the pieces. US, greed is good.
Summary: They don't know, maybe hedge funds
How is it good analysis, depicts retail traders as 20% I don’t feel confident in that percent range, retail traders are misquotes in the market, basically names all, Tesla held about half of the total market last week before sell off
Excellent article, really good analysis.
Maybe in january... february is going down
These fellas laughing all the way to the bank..... it'd seem !
1. Higher demand 2. Lower supply 3. Both
My guess is the jews
funny seeing pictures of human brokers they are there for pictures The amount of trading by computers have put human brokers on the unemployment line
LOL
Probably the richest people in the world who got tax cuts from Trump.
Buy buy buy
Oooh, it’s those evil rich guys! They are just trying to lure retail money in before they jump out and crash the market. Does everyone at CNBC think life is a Scooby-Doo episode?
No mention of the federalreserve of course 🤔
What garbage article, Ordinary regular people are buying 600 Billion NY and CA counts nothing
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