Our measure of aggregate equity positioning fell this week (z-score -0.38,24th percentile), in what was the biggest weekly decline in over three months. The decline was driven entirely by discretionary investors (z-score -0.47, 17th percentile) as they turned underweight, after being at neutral a couple of weeks ago.
Discretionary investor equity positioning narrowed the gap with macro growth indicators like the ISM, while disconnecting from data surprises.
Investor sentiment (bull minus bear spread) flipped back to negative (10th percentile) after staying in bullish territory for a mere two weeks, following a record 44 weeks of bearish sentiment. Bulls declined to an extreme low (4th percentile), while bears rose (78th
percentile).
Long-short equity hedge funds 3-month beta to the S&P 500 remains very low (2nd percentile) despite rising slightly from its recent bottom.
- Deutsche Bank Strategy
**Report date 02/24/23
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