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Another Offbeat Sentiment Indicator


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#1 Douglas

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Posted 04 June 2020 - 05:36 AM

The article at the link below notes the explosive growth in the assets of an airline ETF since the corona crash.  Individual investors have  apparently fully taken to heart the "buy the dip cause the FED will bail you out" mantra increasing this ETF's holdings by a whopping 18 fold even as all the underlying stocks held by the ETF are technically going bankrupt at jet speed.  Airlines are surely high on the bailout list, but it could come with an equity stake requirement, not just helicopter money.  Regardless, bears don't do this sort of thing, but raging bulls sure do. 

 

https://www.marketwa...3?mod=home-page

 

Regards,

Douglas


Edited by Douglas, 04 June 2020 - 05:37 AM.


#2 CHAx

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Posted 05 June 2020 - 01:23 PM

Ironically, all this passive investing plus the fed interventions, have made the market significantly more fragile, requiring more fed backstopping.  Its become a cycle.