"Unanimity In Bullish Views": This Market Reeks Of Complacency

By Jan-Patrick Barnert and Michael Msika, Bloomberg Markets Live reporters and strategists

Investors have been bulking up their long equity positions yet again, leaving them unprepared for a potentially volatile autumn.

Such positioning means one of two things: market participants are either confident that the bull run will continue, or they have no choice but to chase the rally after being underweight earlier in the year. But the result is clear: a near unanimity in bullish views, which is always dangerous as it can lead to explosive bouts of volatility when the narrative turns, like we saw in the first days of August.