Remember what I said on Wednesday evening on the way to talking about how extreme hedge fund positioning has become in the Trump/reflation trade?
Here’s a reminder:
There’s been no shortage of commentary both in these pages and elsewhere about just how one-sided positioning has become around the Trump reflation narrative.
In fact, it’s all anyone cares to talk about. And that’s not just my imagination. Nearly every piece of research coming out of the sellside contains some reference to the reflation trade.
Between that, the incessant news coverage of the inauguration, and Trump’s Twitter feed, I wonder if we haven’t reached “peak Trump.” Actually, God help us if we haven’t – it’s hard to imagine how one man could possibly become any more ubiquitous.
Well, damned if Bloomberg’s morning newsletter doesn’t sound just like that and I for one, enjoyed their piece quite a bit. Here’s a screengrab for your viewing pleasure (note the last line… “this is your world now and for the foreseeable future”… a stark warning indeed):
Note: I also like the correlation point there. As those who frequent these pages are well aware, cross-asset correlations are a favorite topic of mine and it does seem as though when it comes to analysis (be it that which emanates from the Street or that which comes from the media) r=1 as it relates to Trump.