What Wall Of Worry? US Equity Investors Are The Most Levered-Long Since Brexit

What wall of worry?

The S&P 500 Index is heading for its longest streak of monthly gains since 2007, and, as Bloomberg reports, investors are betting there’s more to come.

sudden jump in trading of bullish options on SPY (the ETF tracking the S&P 500), means there has not been more 'investors' holding S&P 500 Calls relative to Puts since Summer 2016...


Notably the last four times that investors were so levered long, things did not end well for stocks...

  • Aug 2015 - down 8% (China deval/flash-crash)
  • Sep 2015 - down 7.4%
  • Jan 2016 - down 7%
  • Aug 2016 - down 5%


And judging by the decoupling between stocks and risk, something is ready to break...