Credit Suisse: Clients Say They Are "Lost", Sentiment At Record Low

The Wall Street “consensus” is something that certain hedge fund players identify so as they can look for opportunity against the grain. There are certain signals that can point to an overwhelming mainstream thought being the trigger for a mean reversion trade. Many institutional investors, however, find safety in the consensus and flock to trades and investment ideas coveted by the crowd. While it is popular to speak out against the “consensus,” it is often a more difficult strategy to execute in practice.

Credit Suisse, out with a Global Equity Strategy report Thursday titled “Where is the consensus now?” points to the perils. In speaking with clients, the bank has “never had so many client meetings starting with statements such...