Wall Street's recent risk-off and reduced equity exposure may set the stage for
a sharp rebound if an Anthropic IPO rekindles investor interest in AI, with
technology likely to lead. Deutsche Bank data show investors have trimmed equity
exposure to roughly historical norms; active managers' exposure to US equities
is at a one-month low and quant-driven funds have reduced positions, leaving
room for fresh buying if confidence returns. Hedge funds have increased bearish
bets: Goldman says its hedge fund clients have sold short about $5 for every $1
of gross purchases this month, and securities-on-loan used to bet against stocks
are near five-year highs — positioning that could amplify a rally via
short-covering if markets turn up.
