December 22, 2020
Stock market bears get a shot in the arm. A new virus strain is the bad-news catalyst sinking stocks worldwide. Yet, it comes as investor sentiment was quite bullish and positioning was extended. For the last two weeks, Horizon Investments’ Market Notes compiled the ways investors were putting themselves in a precarious position: PIIGS Fly and Other Stories of Investors Reaching for Risky Bets and Record High S&P 500 Ignites Unhealthy Retail Investor Interest. Add to that the record streak of bullish positioning in the weekly survey from the National Association of Active Investment Managers.
Never before has it been above the 100 level for five weeks in a row!