Greater fools drive the stock rally

Tuesday 4 February 2025

Greater fools are driving the stock rally. The Market Ear.

Cause for concern

There are a number of “causes for concern” now when we look at positioning indicators. It has been retail investors that have done the majority of the buying over the last few days. Inflows into equity funds have been close to “manic-like”. Put-call skew is extreme. Hedge fund gross is extreme. Buckle up!

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.