Favorite AI Stock, Hedge Funds Win At The Expense Of Asset Allocators – Investors Discover Massive National Debt
Portfolio Pulse from The Arora Report
Hedge funds have been profiting from short selling long bonds, while asset allocators and their clients have been buying long term bonds, leading to a rise in the yield on 30 year Treasuries to 4.397%. This is reflected in the chart of iShares 20 Plus Year Treasury Bond ETF (NASDAQ:TLT). The Arora Report had advised its members to buy leveraged inverse ProShares UltraShort 20+ Year Treasury (NYSE:TBT), which has been highly profitable. Chinese bonds have recently been decimated and the yuan has been weakening against the dollar. Applied Materials, Inc. (NASDAQ:AMAT) reported strong earnings, but the stock is falling in the premarket due to general malaise about tech stocks. Money flows are negative in several tech stocks and ETFs, and Bitcoin (CRYPTO: BTC) has fallen close to $26,000.
August 18, 2023 | 2:52 pm
News sentiment analysis
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NEGATIVE IMPACT
Applied Materials reported strong earnings, but the stock is falling in the premarket due to general malaise about tech stocks.
Despite strong earnings, the stock is falling due to negative sentiment towards tech stocks.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Bitcoin has fallen close to $26,000.
Bitcoin has fallen significantly, indicating negative sentiment towards the cryptocurrency.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The iShares 20 Plus Year Treasury Bond ETF has fallen to the top band of the support zone due to rising yields at the long end.
The ETF has fallen due to rising yields at the long end, which is a negative for bond prices.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The ProShares UltraShort 20+ Year Treasury has been highly profitable as it is a leveraged inverse ETF, meaning it rises when bond prices fall.
The ETF has been profitable due to rising yields, which is a positive for this leveraged inverse ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100