The writing was kind of on the wall at the end of March. S&P 500 Index was near the 4600 level whereas inflation rate was close to 8% and the 10-year Treasury yield jumped to 2.7%. The probability of further increases in interest rates and sharp declines in the stock market was much larger than the probability of further gains in stock prices. So, we started telling our premium subscribers to short the market at the end of March. Most hedge funds interpreted the macro developments the same way we did and reduced their exposure. The total value of stock holdings in hedge funds’ portfolios went down from $3.1 trillion at the end of December to $2.8 trillion at the end of March.
This isn’t a terribly large reduction in market exposure, but it is still a reduction. It still shows that hedge funds have a slight edge in market timing.
Insider Monkey has long been a believer of imitating the top stock picks of hedge funds, and this approach has helped us beat the market on average over the last several years.
While most Americans want to put 2020 behind them…
And a return to “normal” life…
According to Wall Street legend Marc Chaikin, life is about to get even stranger, and it could have a sizable impact on your wealth.
“A massive and surprising new transition could determine the next group of millionaires,” says Chaikin, who predicted the 2020 market crash. “While leaving 99% of the public worse off than before.”
“If you own regular stocks, you’re in for a big surprise,” he adds.
Chaikin, who has appeared numerous times on CNBC’s Fast Money, says that you absolutely must consider buying one particular type of investment right now, before it’s too late.
And no, it’s not cryptocurrencies.
“I grew up in a world where you could do extremely well by investing in ordinary companies,” Chaikin says. “It’s how I spent the majority of my 50-year career on Wall Street.
“But the simple fact is, the next phase of the pandemic could change everything you know about making money.”
Chaikin has agreed to name the #1 investment to buy right now, free of charge.
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