Hedge Funds’ Prediction of Decline in US Shares Decreases
“Fast money” hedge funds are observed to close their short positions rapidly, although the climb is at risk in US stocks.
Looking at the latest figures quoted by the Commodity Futures Commission (CFTC), speculative investors made the highest net purchase since 2007, with 206,227 in S&P 500 Index E-mini contracts.
While the increase in the value of the US shares led the index to the record region, net short positions had reached the highest level of the decade that we almost left behind.
While one of the most undesirable rises in the history of short finance was recorded, the fact that traders were undecided about what to do led to the closing of a considerable short position.
The S&P 500 Index has grown more than 40 percent since early March, although investors are concerned that the US may be too optimistic about the economic recovery.