Wall Street's Top Equity Bull Warns Over Quant-Driven Selling
- Deutsche Bank says quant funds may dump $70 billion of shares
- Growth risk and market turbulence threaten elevated positions
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The spike in market volatility risks turning one of this year’s biggest stock buyers into a seller, according to Wall Street’s top equity bull.
Computer-driven traders, who make bets based on momentum and volatility signals, may dump more than $70 billion of shares in coming weeks should the market turbulence persist, estimates Binky Chadha, chief global strategist at Deutsche Bank, whose year-end target for the S&P 500 is the highest among those tracked by Bloomberg.