Risk Assets in Danger Zone as Bull Feeding Time Is a Frenzy
- Investors snap up equity contracts, ditch U.S. Treasuries
- One-sided trade risks mass exodus if sentiment reverses
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Record bullish positions are building up across currency, equity and commodity markets as hedge funds and real-money investors dump the dollar and U.S. Treasuries to crowd into risk assets around the world.
Goldman Sachs warns that “extreme” sentiment is propelling global shares to their best start to a year ever, while U.S. government bonds head for their worst on record. Investors are throwing caution to wind to wager more gains are nigh. Those piling into same-way bets are causing some to warn that markets are dangerously close to overextended.