Investors are making the biggest bet in the futures market since 2011 that the stock market is going to sell off
Some strategists believe when a lot of investors take the same position, there's a herd mentality at work and investors are actually sending a contrarian signal. In this case, that would be positive for stock market gains. But Peter Boockvar, chief investment strategist at Bleakley Global Advisors, disagrees that stock futures investors are necessarily representing a contrarian call.
Boockvar said about twice as many futures contracts were now short as long, for the week ending last Tuesday. He points to cases where the shorts were right, like in September, 2007 when they were at a record high ahead of the market peak in October. "They were right. I'm skeptical to look at this as a contrarian indicator. I'm going to argue that sometimes the shorts are right," he said.
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