InvestorQ : What has driven this sharp bounce in global markets since the lows of March?
vidhya Laxmi made post

What has driven this sharp bounce in global markets since the lows of March?

Answer
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5 months ago


Nomura puts the onus of the rally entirely on the quant funds (high tech funds trading with programs). In fact, the S&P 500 has surged more than 35% since the lows of March this year and Nomura has attributed most of this rally to the actions of Quant funds in the US. According to Nomura, the Trend Following Quant Fund may have been at the forefront of the bounce. Quant funds had been covering their short positions since March and had infused nearly $380 billion into equities in last two months in global equities. Nomura also pointed out that there was more short covering left and that could take global markets higher. The S&P 500 will have to rally a little over 10% from here to reclaim previous highs. This rally has rubbed on all the key markets globally including Europe and Asia.