• Key market indices
    • S&P 500: 3787.38 +0.98%
    • DJIA: 30603.36 +0.99%
    • HSI: 28550.77 -2.55%
    • STI: 2920.30 -1.30%
    • Gold Spot $/Oz: 1842.60 -0.03%
    • Brent Crude: 55.74 +0.38%
    • Bitcoin: 33900.79 +9.20%
  • Hedge funds slashing equity exposure at fastest pace since 2014 (Link)
    • Fund managers covered their money-losing short sales while trimming bullish bets for a fourth straight session on Tuesday
    • During this stretch, total outflows from the market reached the highest level since October 2014
    • The Goldman Sachs Hedge Industry VIP ETF (GVIP), tracking their most popular stocks, tumbled 4.3% for the worst day since September
  • Low interest rates are inflating asset bubbles (Link)
    • Earnings are interest rates are the main factors affecting equity prices; despite earnings doing decently well, low interest rates are having a bigger effect
    • The 10-year yield is not exaggerating the sickness of the economy
    • Every sector in the S&P today was lower, including even gold, suggesting that the main culprit is low interest rates
  • Bridgewater's Prince sees rebalancing of wealth that favors Asia (Link)
    • Prince says that there is a rebalancing of wealth between the western hemisphere and the eastern hemisphere in Asia, and there is a rebalancing between asset holders and debtors
    • He claims that the rebalancing of the world is going in this direction despite pricing actually moving in the other direction
    • Bridgewater currently favors Asian assets across currencies, bonds and stocks
  • Asia could be next as Reddit squeeze on hedge-fund shorts goes global (Link)
    • Retail traders are winning a dramatic battle with short-selling hedge funds
    • The success of this week's retail assault on short positions in GameStop has prompted hedge funds to cut similar positions across the world and sell long positions in stocks to pay for their losses, which contributed to a slide of over 2% in Wall Street's main indices on Wednesday
    • The trend could spread to Asian names that have recently seen short selling, such as Malaysia's Top Glove, or larger liquid stocks such as Alibaba
  • AMC share price quadruples as retail traders raid hedge-fund short targets (Link)
    • Shares of embattled movie theatre giant AMC Entertainment more than quadrupled on Wednesday
    • About 10 minutes into the session, trading in the stock was halted for the first time due to volatility and shares were halted several times during the first hour of trading amid heavy activity
    • The stock finished the day with 301.21% gain to close at $19.90
    • AMC has 24% of its float tied up in short interest, and GameStop's short interest stands at 138%
  • The next GameStop: Highly shorted stocks that are popping - or on the verge of crashing (Link)
    • Article written by Head of Quantitative Strategy at Seeking Alpha
    • Contains a table of 25 stocks with a short interest above 25%

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