17.12.24 - All-in - record low cash levels reported

All-in stance on US equities. The latest survey of fund managers released by Bank of America shows record low levels of cash. Investors push US equity indices to record highs on pure optimisms since US presidential election and the Trump victory.

Markets: US equity indices reach new record highs almost on a daily basis.

My view: the skyrocketing tech stocks combined with the low cash level I rather take as a contrarian indicator. Stocks correction can be around the corner any time soon. However, the momentum can still last for more days. A fact to keep in mind, that during the holiday season, the market liquidity is going to be on a reduced level. Therefore, bigger moves in either direction could be expected.
After the big run of US equities, reducing some positions to rise some cash could be of advantage. At the same time I added some short positions with some lately skyrocketing stocks like Palantir, AppLovin, Netflix, Arista Network, and latest addition Tesla, while I keep the short on Nvidia. Furthermore, I expect an increase in volatility. To benefit and for some hedging purpose I added an ETF on long volatility.

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