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Nomura’s McElligott Explains Why Some Traders And PMs Are Set To Fade Jerome Powell

"Desire to fade."

"Desire to fade."
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2 comments on “Nomura’s McElligott Explains Why Some Traders And PMs Are Set To Fade Jerome Powell

  1. Anonymous

    Ok, let’s see, the market is all knowing so a sell off predicts a slow down or recession. The Fed understands that lower equity prices (higher ERP) could lead to cost cuts, job cuts, cap spend cuts impacting growth. So the Fed talks dovishly so the market the goes back to the first point (they sell equities because of recession risk). A positive negative feedback loop. If a “professional money manager/analyst/trader” follows this thinking then no wonder why passive investing is taking share. When the Fed acknowledges the risks it is a time to rethink the trade rather than reflexively double down. Oh, probably the same people thinking this way now were bullish in Jan 18 and Sept 18 and saying the Fed raising rates is good and confirmation of a strong economy………..

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