https://www.bloomberg.com/news/arti...-reflation-trade-they-don-t-like?srnd=premium "Despite a rally of at least 40% in energy and financial shares over the five months, hedge funds -- on average -- have steadfastly shunned stocks in the reflation trade, favoring instead companies seen as resilient during an economic slowdown. Their exposure to cyclical shares sits at one of the lowest levels in a decade relative to defensive ones, industry data compiled by Bank of America Corp. show." "What’s driving the aversion isn’t obvious. One theory is that hedge funds aren’t buying the return-to-normal narrative despite the rollout of vaccines. Last year, when retail investors rushed to hunt bargains in beaten-down groups like airlines and hotels, professional speculators were hesitant to chase pandemic-ravaged companies. Another explanation holds it may be related to apprehension that economic acceleration, propelled by monetary and fiscal support, will lose steam once the latest federal spending wears out. Mike Wilson, an equity strategist at Morgan Stanley, is an ardent proponent advocating a shift to stocks better positioned to weather potentially disappointing economic data, such as consumer staples." Thoughts?