Stock Pickers on Wall Street Are Going All-In on Recession Bets
- Hedge funds’ relative cyclical exposure falls to a record low
- Being early on recession trade can be costly, BofA study shows
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As Wall Street economists and central bankers debate if and when the US economy will slip into a recession, big money managers aren’t waiting to find out.
Increasingly, professional stock pickers are shifting money out of economically sensitive shares like banks while parking it in stocks seen as resilient during economic downturns, such as utilities and consumer staples.