Nomura’s McElligott Takes Victory Lap As Markets Ponder Return Of ‘Duration Infatuation’
It's been an eye-popping run for the 1-month price reversal strategy advocated by Nomura’s Charlie McElligott in December.
The trade - which he touted in a CNBC appearance on December 18 - has returned +6.5% this month and nearly 8% since what he calls the "pre-trade set-up" five days into the year-end turn.
By way of review, some manifestations of the pro-cyclical rotation trade which was part and parcel of the market zeitgeist in Q4 have been faded in 2020. We discussed that in a wider co
In six weeks time the “experts” will look back and proclaim that HYG was a “tell” that was ignored. But even the most bearish did not see the 20 pct declined seem impossible given Central bank liquidity backdrop. Shit happens.