LIVE MARKETS-CTAs stay risk-on, but room to buy is limited - UBS
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CTAS STAY RISK-ON, BUT ROOM TO BUY IS LIMITED - UBS
Trend-following funds known as CTAs (Commodity Trading Advisors) are heavily invested in stocks right now, sitting near their highest long positions in over 30 years, according to UBS.
That means they don't have much room left to buy, even if markets keep rising. On the flip side, they could sell if things turn sour, but UBS says the amount they'd likely sell, around $55 billion, is relatively small compared to past downturns.
"CTAs are close to max long in equities... and are inclined to stay so in the near term," the Swiss bank says.
(Danilo Masoni)
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FOR TUESDAY'S OTHER LIVE MARKETS POSTS:
MINERS LIFT STOXX INTO POSITIVE TERRITORY, DEFENCE NAMES CAP GAINS CLICK HERE
EUROPE BEFORE THE BELL: STOCKS HEAD FOR SMALL LIFT CLICK HERE
SUITS AND SMILES DEFINE NEW UKRAINE TALKS CLICK HERE
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