You Don’t See This in the Sentiment Indicators
FinancialRx calls our attention to this story about a mutual fund manager. This is the sort of behavior that is not captured by traditional sentiment indicators. This is but one example. Over the last few years long-only funds seem to be stretching their charters with ADR’s, derivatives, and even investments negatively-correlated with the market. This could be fuel for a rally if these managers need to chase performance benchmarks.
Link: You Don’t See This Everyday.
Bloomberg reports a Federated Investors mutual fund manager is predicting a big decline in the market. And he’s doing something about it.