All it took was the best start to the year in history for the Nasdaq to get asset managers to forget about the inverted yield curve.
In the past two weeks, discretionary managers have been throwing in the towel on strategies that were underweight equities.
"As you can see we’re not at early 2022 levels of overweight positioning but the balance has shifted in recent weeks as FOMO seems to have taken over," writes Deutsche Bank's Jim Reid.
At 64%, the chart still shows plenty of space before the trade is crowded but it's clear that we're no longer in an early bull market. There's also those same nagging messages from the bond market with the Fed hiking and 2s/10s at -96 bps, which is the most-inverted since the peak of the bank rout in early March.
