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Global macro hedge funds and Commodity Trading Advisors (CTAs) have adopted a bearish stance on equities amid expectations of falling stock prices, according to a recent report by Barclays. This change in sentiment has been triggered by an increase in 10-year U.S. Treasury yields to around 5%.
The bearish outlook is reflected in the ‘s approximately 9% drop since July. CTAs have notably ramped up their short positions in U.S. technology stocks, indicating a broader negative perspective on the sector.
In addition to U.S. equities, these funds also show a bearish outlook on other assets including U.S. Treasuries, Japanese Government Bonds (JGBs), and German Bunds.
Despite the prevailing market conditions and growing pessimism towards equities and bonds, these funds maintain a bullish stance on oil. This divergence underscores the complexity of current global markets and the differing views on asset performance moving forward.
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