Just as it was beginning to look like the bond market’s luck was finally running out, President Trump made some remarks that all but guarantee that the bond rally will go on for a little while longer.
The air came out of the bond bubble last month, when bond funds recorded the highest five-week outflows in three years and a half, according to capital flows data analysed by Bank of America Merrill Lynch economists.
If you are a contrarian, your best bet for July would be to go short banks, as a fund managers survey by Bank of America Merrill Lynch revealed there was a record long in global banks in the month.
The number of investors who believe the oil price is undervalued is the highest since April 2009, according to the latest survey of fund managers by Bank of America Merrill Lynch.
Contrarian investors should go long eurozone equities and short Japan, a survey of investors by Bank of America Merrill Lynch earlier this month showed.
After heavy drops in price earlier this year, some analysts are once again bullish on gold. They point out that the slide in the precious metal’s price has been arrested due to several factors.