Why The 'Most Consensus Trade' Of 2024 Will Blow Up In The Market's Face

The market's reflexivity was on full display in the latest monthly Bank of America Fund Managers Survey (full note available to pro subs in the usual place), in which BofA Chief Investment Strategist Michael Hartnett polled 254 panelists managing $691 billion in the period between Dec 8 and 14th, thus capturing sentiment after the unexpected dovish Fed pivot. Not surprisingly, Hartnett found that the Fed's capitulation resulted in the most upbeat sentiment since Jan'22 (when stocks hit an all time high last) on what is now called "Goldilocks ’24"...

.... as investors cut cash to 4.5% from 4.7%, a 2-year low...