Taper Delayed Is Not Taper Denied But Hedge Funds Are Partying

Societe Generale’s Hedge Fund Watch is surprised at the overzealous long exposure in the S&P 500. The analysts believe that investors have hiked up long exposure in equities thus going risk-on, implying that they either do not expect a taper of QE anytime soon or they believe it won’t affect the market. The S&P 500 (INDEXSP:.INX) is trading at a multiple of 17x and is headed for a double digit correction, SocGen says. Fed will taper in March 2014 SocGen reiterates its expectation that a delayed taper does not mean it is off the table. The analysts think that an announcement…