Economics
Wall Street Unnerved by Herd Strategy's Best Month Since 2014
- Trend-following captivates stocks, bonds, fx, commodities
- Warning signs point to coming reversal, pain for popular trade
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Asset allocators hoping to turn a profit this month only needed one simple rule: Don’t fight the trend.
Everywhere you look -- stocks, bonds, commodities, currencies -- past winners keep thriving. Despite concern over shifting central bank policies or a sudden flare-up of inflation, January has been more of the same. In fact, cross-asset market momentum has only been this bullish three other times in the past decade.