Global equities at highs but why is positioning still lagging?

Global equities have rallied to challenge record highs, driven by an AI-led surge and heavy institutional and retail inflows, but overall positioning remains muted. April saw about $86 billion of large-scale inflows, concentrated into US markets and tech exposure, while Europe experienced its worst redemptions in two years and emerging markets were mixed. Hedge fund positioning is still below historical peaks, suggesting there is dry powder that could extend the rally if momentum persists. Corporate earnings resilience and ample liquidity underpin the bullish case, even as bond investors favor TIPS amid inflation and government debt worries. Technical signals (falling put/call ratios) and lower cross-asset volatility point to a potential “melt-up,” though sustainability depends on Big Tech earnings and whether remaining sidelined investors join the move.