Hello everyone, and welcome back to our weekly positioning update.

Today’s version will be short and to the point, allowing you time to digest the meeting later today. It serves as a quick summary of the signals we are picking up across our real-time monitors of hedge fund positioning across various assets.

The overall picture suggests hedge funds are largely leaning dovish for tonight’s meeting (playing into the lower rates/lower growth narrative). However, they have reduced exposure heading into the meeting across equities, FX, and commodities. Fixed income, on the other hand, appears to offer the greatest advantage going into the upcoming rate-cutting cycle.

Historically, markets tend to follow predictable patterns in the weeks immediately after the first Fed cut. We typically see equities, bonds, and commodities trade higher, while the dollar weakens. However, after 20-30 trading days, the picture often becomes more uncertain, as markets begin to react to the reasons behind the cut, such as slowing growth or recessionary dynamics.

Without further ado, here’s a brief summary of cross-asset positioning!