In a notable shift, Gallup reports that 61% of adults currently have investments in the equity market, marking the highest level since the financial crisis in 2008. This surge in investor participation has raised concerns about the overall vulnerability of the market.
Adding to the complexity is the revelation from Goldman Sachs that hedge fund exposure to mega-cap tech stocks has skyrocketed to the 99th percentile. At the beginning of the year, this exposure was comparatively modest, lingering in the 12th percentile. This sharp uptick suggests that hedge funds have significantly increased their bets on large technology companies, potentially exposing them to greater market volatility.
The current situation poses questions about the potential fragility of the equity market, especially considering the concentration of hedge fund positions in mega-cap tech stocks. Investors and market participants will be closely monitoring these developments, as the delicate equilibrium in the equity market could be at risk if a significant market correction were to occur.
Sources:
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"Gallup says 61% of adults have money in the equity market, its highest level since 2008."Gallup via @sblitz1 @TS_Lombard pic.twitter.com/5EELd5iarb
— José Ricaurte Jaén | 📺In Case You Missed It (@JoseRicaurteJ) November 27, 2023
Hedge fund exposure to mega-cap tech is in the 99th percentile. At the start of 2023, exposure was in the 12th percentile.
via Goldman Sachs pic.twitter.com/83GhWXUCw8
— Daily Chartbook (@dailychartbook) November 16, 2023