Risky assets have the ride of their lives as bullish investing knows no bounds
London — Record bullish positions are building up across currency, equity and commodity markets as hedge funds and real-money investors dump the dollar and US 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 US government bonds head for their worst on record. Investors are throwing caution to the 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. "There are some notable net long and short positions that are moving into stretched territory," said Ben Emons, chief economist at Intellectus Partners and a contributor to Bloomberg View. "This positioning speaks very much to the global synchronisation theme out there whereby the dollar plays a pivotal role." Options traders are now the most bullish on the sterling in almost a decade, while speculative investors have amassed the ...
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