A Goldman Sachs report out earlier this week shows that hedge funds have upped their exposure to stocks to a 57% net-long exposure at the start of the year. This is an all-time high ! Portfolio density ( percentage of portfolio invested in top 10 positions) is also on the rise similarly to what happened in 2007. This no doubt should be seen as a sign that the end is approaching, although we are not there yet. We are in a stockmarket melt up scenario (before the financial system goes out-of-control ?). My own contrarian indicator is starting to flash warning signals aswell : I have been very bullish too since the breakout in European stocks last month.
