One reason Feb/March was so violent, beyond just fear of the unknown and you know a coming depression, was the max positioning of systematic and vol sensitive investors.
Compare to today where exposures in some cases remain below previous troughs.
Compare to today where exposures in some cases remain below previous troughs.
Major declines in equity markets will have to come from major revisions to future earnings, which is totally possible. But the accelerant of max positioning is not there.
GS:
CTA/VOL CONTROL/RISK PARITY This pocket of the market never really re-risked anyways. CTA – they are still long – key levels 2960/2940/2915 with 2940 most important. We have this community long ~$25bn of equities globally. This was ~$225bn in Feb.
CTA/VOL CONTROL/RISK PARITY This pocket of the market never really re-risked anyways. CTA – they are still long – key levels 2960/2940/2915 with 2940 most important. We have this community long ~$25bn of equities globally. This was ~$225bn in Feb.
