NewsHK
Seasonality in equity markets rarely receives its due attention until it is already working.
BTIG has issued a warning on what it characterizes as high levels of market complacency, timed to the approach of the calendar period the firm describes as historically associated with the worst equity seasonality of the year.
The firm's caution is a condition call, not a catalyst call. Against the backdrop of elevated complacency, BTIG is pointing to the calendar itself as the risk that markets appear to be underpricing.
The concern is that current positioning is poorly suited to the season ahead. Seasonal tendencies carry no predictive guarantee.
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