Investors got less bullish on gold as hedge funds doubled their short holdings just before prices erased a weekly loss and Janet Yellen pledged to press on with economic stimulus if confirmed as Federal Reserve chairman.
Cheap is converging with expensive in the American equity market, narrowing options for investors looking for bargains after the broadest rally on record lifted almost 90 percent of the Standard & Poor’s 500 Index this year.
U.S. stocks are rallying at the fastest pace in almost two years after Congress resolved the budget standoff and investors shifted their focus to Federal Reserve stimulus and forecasts for record corporate profits.
Speculators got less bullish on gold, selling long contracts at the fastest pace this year as prices fell the most in almost three months on prospects for less central-bank stimulus. Goldman Sachs Group Inc. said the retreat has further to go.
Sales of U.S. structured notes tied to Bank of America Corp. have soared this year as issuance of securities linked to a single stock increases, with investors accepting higher volatility for potentially greater gains.
Disruptions such as last month’s three-hour shutdown by the Nasdaq Stock Market will never be completely preventable and U.S. regulators shouldn’t make perfection their goal, according to a Bloomberg Global Poll.