Bank of America: Hedge funds are unusually bullish about these 20 stocks as they brace for tough times in markets

Hedge funds are cautious despite positive economic data, with defensive holdings high relative to cyclical stocks, and here are the 20 stocks hedge funds are gravitating towards in this uncertain market.

businessinsider.com

Relevant topic timeline:

8/21/2023

This market strategist expects stagflation and is investing for it now.

Keith McCullough, CEO of Hedgeye Risk Management, warns investors to be agnostic and open-minded in order to find opportunities in a challenging market environment, particularly due to the threat of stagflation, and suggests allocating investments to sectors such as health care, gold, Japan, India, Brazil, and energy stocks. McCullough criticizes the Federal Reserve for underestimating future inflation and urges investors to watch their actions rather than their words. He predicts that the Fed will tighten rates despite a low point in the U.S. economy, leading to a potential stock market crash. McCullough advises investors to own assets like gold and to be cautious with U.S. stocks, while favoring sectors that are accelerating, such as health care.

8/25/2023

The stock market will continue higher until these 2 things happen, Bank of America says

Bank of America believes that the stock market will continue to rise as investors' bullish sentiment contradicts their conservative portfolio positioning, suggesting there is still upside potential until hedge funds increase their exposure to cyclical and high-beta stocks and economic conditions deteriorate considerably.

8/30/2023

Hedge funds have made a huge push into risky assets. Here's what that means.

Stocks bounce back after weak job opening data, but achieving positive returns for the month remains uncertain due to market uncertainties and unanswered questions about the strength of the consumer and investor behavior. Hedge funds are increasingly taking on risk, but are still below exuberance levels, according to Société Générale.

8/30/2023

Treasury market sees growing divergence between investors and their positions

Hedge funds are increasing their short positions in the Treasury market, while asset managers are going long, reflecting different views on the U.S. economic outlook and causing volatility in the 10-year Treasury yield.

8/31/2023

Hedge funds' use of leveraged Treasury trades needs monitoring, Fed paper says

Hedge funds' increased use of leveraged trades in the Treasury market is raising concerns among economists at the Federal Reserve Board, who highlight the need for continued monitoring due to the potential financial stability vulnerability of these trades.

9/7/2023

Can stocks finish strong in 2023? Wall Street giants weigh in

Wall Street strategists are cautiously optimistic that investors can find returns through the rest of the year and beyond, despite the recent rough month for stock markets, with valuations looking less stretched and opportunities in strong balance sheet tech.

9/17/2023

Wall Street Banks Brace for Choppy End to 2022 as Concerns Grow Over Rates, Economy

Investors are becoming increasingly cautious about the US stock market and the economy as 2023 draws to a close, leading to a more defensive investment approach by Wall Street banks and experts warning of potential pain ahead.

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Posted 8/26/2023, 10:00:00 AM

Bank of America: Hedge funds are unusually bullish about these 20 stocks as they brace for tough times in markets

businessinsider.com

Relevant topic timeline:

8/21/2023

This market strategist expects stagflation and is investing for it now.

8/25/2023

The stock market will continue higher until these 2 things happen, Bank of America says

8/30/2023

Hedge funds have made a huge push into risky assets. Here's what that means.

8/30/2023

Treasury market sees growing divergence between investors and their positions

8/31/2023

Hedge funds' use of leveraged Treasury trades needs monitoring, Fed paper says

9/7/2023

Can stocks finish strong in 2023? Wall Street giants weigh in

9/17/2023

Wall Street Banks Brace for Choppy End to 2022 as Concerns Grow Over Rates, Economy