Bitcoin beats out long tech and short dollar trades
- Allocation to stocks at 2-year high
- Allocation to stocks and commodities at 10-year high
- Correction catalysts are peak growth on vaccine, virus, or peak liquidity
- Cash levels at the lowest sine March 2013
- Long Bitcoin is the most crowded trade, followed by long tech and then short USD
I reckon this reflects the amount of bullishness in terms of investor risk-taking behaviour. While Bitcoin may have been the flavour of the week/month, the standout point to me is that cash levels have dropped to the lowest in almost 8 years.
That screams that there is just too much money lying around and it has to be going somewhere. If not Bitcoin, then surely something else when the conditions are ripe for the taking as investors are keen to pile on the cash.
