Nomura’s McElligott Says Keep Hedging as Euphoria Powers Stocks

Bullish investors should keep hedging their portfolios as more and more people chase this year’s stock market rally, according to Nomura Securities International Inc. cross-asset strategist Charlie McElligott.

Euphoria over artificial intelligence is inducing a “virtuous feedback loop” that’s turning growing ranks of skeptics into equity buyers at higher levels and increasing overall risk taking, McElligott wrote in a note to clients.