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Andy Constan describes a sharp divide in market sentiment, characterizing groups as either perma bulls continuing to buy despite high levels, or price followers who shift quickly between long and short positions.
Constan also highlights the presence of perma bears, emphasizing their tendency to point out declines. The discussion points to highly polarized investor behavior during times of market uncertainty.
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Constan recently explained that increased volatility has offset the benefits of $200 billion in GSE MBS purchases for U.S. mortgage rates, with option-adjusted spreads moving higher as support fades here. He has also questioned the motives behind certain cocoa and CLZ trade recommendations, suggesting that liquidity needs may outweigh fundamental drivers here. These previous signals reflect his focus on both investor behavior and shifting market conditions.