.September 16, 2024 Monday 06:18:22 AM

Hedge funds have been selling U.S. equities for the fifth consecutive week, reflecting concerns over the economy, inflation, and Federal Reserve decisions. This trend has led to increased market volatility.

Key factors driving hedge fund selling include uncertainty around Fed policies, inflation worries, and a focus on capital preservation. This cautious stance is influenced by fears of aggressive monetary tightening.

Understanding market liquidity and institutional movements is crucial for investors. Tools like the Sector P/E Ratio from FMP provide insights into sector valuations, helping investors identify long-term value opportunities.

The sustained selling of U.S. equities by hedge funds may indicate further downside risk and increased volatility. However, it could also create opportunities for long-term investors to buy quality stocks at better valuations.

Using FMP’s advanced DCF models, investors can analyze company intrinsic values to make informed decisions about undervalued stocks in the current market climate.