BAML Survey Shows The World Turned Upside Down: Most “Crowded Trades” Bitcoin & Short Vol

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Mark Melin
Published on
Updated on

On a day when the much-ballyhooed tax plan passage in Congress leads to the stock market selling off Tuesday – buy the rumor, sell the fact – it is interesting to note that bitcoin selling off might just be the new indicator of “risk off” for the market. In part, this concept can be seen in Bank of America Merrill Lynch’s December 19 Global Fund Manager Survey, which paints an institutional picture of “Golditrumps” market environment where “short volatility” is a top three crowded trade alongside bitcoin. [reits] Benchmark history: Bitcoin and short vol are most crowded trades BAML’s survey…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.