Economics
Some of the Hottest Stock Trades of 2019 Are Now Getting Smoked
- ‘No choice but to take on more risk’ amid hopes for trade deal
- Extended defensive positioning may feed into current rotation
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Equity investors have been building their defenses for months. Now the bulwark is being dismantled in a rapid rotation out of winning haven trades and into riskier plays.
Thank the prospect of a U.S.-China deal and improving economic data. Bond yields are jumping again, debt-like equities are down, and volatile stocks from small-caps to cyclical companies are back in favor.