Going against the grain.
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Quick hits:
Use this draw-down as an opportunity.
The VIX cannot sustain the currently implied daily swings of 1.9%. (Over-hedged)
USD is raging to 20yr highs as the EUR & YEN crater. Helping the fed tighten
Remember, there is a greater chance of the fed becoming incrementally more dovish than hawkish in 6-9 months. (Bullish)
Bonds have had their worst draw-down since 1920. (Getting more attractive)
The economy is already decelerating helping tame inflation
MBA mortgage applications fell -8.35% vs exp -5.0%. Housing is cracking.
Rising inventory/sales ratios means deflation for used car prices.
Covid is fading in China. Higher frequency indicators are pointing to a big bounce in economic activity. This coupled with easing policy and expanding credit will help equities around the world.
QQQ LQD GSG GLD BTC PHO
S&P: Still hovering around that crucial 4150-4100 level
The average S&P draw-down is 13.5%. We are right there but the average stock is down 21%, which is why this draw-down feels more profound.
The flight into defensive equities is overdone.
VIX cannot sustain these elevated levels for much longer.
VIX: An easy one for the real players.
Despite all the misleading headlines, Bitcoin is still the true risk barometer and holding up.
Return always wants its risk payment. Not Investment Advice.