New user here but I have really grown to appreciate the community here. I was reading about the dip today in the indexes. Apparently hedge funds across the world are selling many long positions to cover their short exposure (regardless of exposure to GME). This deleveraging has cause a broad decline as these funds/markets deleverage their holdings.
I’m not sure how long this secular trend will happen but thought I would post about it to get opinions. Does the dip continue? Is there more money somewhere that will come “buy the dip”? Or are we dealing with a prolonged period of depressed stock prices (no new all-time-highs on the horizon).
The article below summarizes this. Are you buying this dip? Or waiting to see where the bottom is? Any clue as to how much leverage needs to come out before the market stabilizes?
Hedge Funds Slashing Equity Exposure at Fastest Pace Since 2014
https://www.bloomberg.com/news/articles/2021-01-27/hedge-fund-favorites-are-telltale-leaders-in-broad-stock-selloff
Submitted January 28, 2021 at 01:51AM by LOLeverage https://ift.tt/3iRl4qA
