Morgan Stanley's Savone Finds Hedge Funds Folding Into The Rally While Retail Goes All-In On Nvidia

Everyone was dealt a new hand this week. The pros looked at theirs and folded.

Last Sunday, Morgan Stanley's Nick Savone was sifting through the wreckage of a record 70% tech momentum crash, with hedge fund net leverage at the 0th percentile of the past year and the AI trade at mile 20 of the marathon. Seven days later the S&P is 2.5% higher, the four-week losing streak is over, and the reader-favorite author of "Global Reflections" (available to pro subs) has swapped the running shoes for a card table. This is how he opens:

Folding Into Strength