Login with your ZeroHedge Premium account

Sign up here for the free newsletter

{{message}}

Subscribe with a new email
      Almost as stretched as...

      Valuation multiples are now almost as stretched as they were at the start of the year.

      Almost as stretched as...
      Source: Yardeni
      Risk appetites levels consistent with a near term top

      Data Trek shows how institutional investors are, believe it or not, quite bullish right now. The following chart shows State Street’s Institutional Investor Risk Appetite Index. The data is calculated using changes in portfolio positioning by State Street’s global custody clients. “Big Money” risk appetites have only recently turned positive, but these ended May at levels very near past term highs for the S&P 500. 

      Data Trek: "We recognize that risk appetites are verging on levels consistent with a near term top. This could certainly come later in June."

      Risk appetites levels consistent with a near term top
      Source: Data Trek
      Individual Investors are in a holding pattern

      After buying equities for the first three months of 2025, individual “buy-and-hold” investors have stopped buying equities over the past two months.

      Individual Investors are in a holding pattern
      Source: Goldman
      Do we have nothing to fear but nothing to fear?

      "That would represent much to fear, as fearless investors create meltups, which then become meltdowns. But in fact, the stock market's sentiment gauges are showing plenty of fear, which is bullish from a contrarian perspective."

      Do we have nothing to fear but nothing to fear?
      Source: Yardeni
      Positioning remains balanced

      John Marshall, GS derivatives trading: "Single stock put-call skew is in the middle of its 2-year range. This crowd-sourced metric shows that positioning is balanced; the equity market is likely to react normally to fundamental news in coming weeks rather than reacting with a skew in a particular direction."

      Positioning remains balanced
      Source: GS trading desk