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Hikes, Specs And Techs
Tech shares may be "over-discounting" prospective additional relief from bond yields, traders are increasingly convinced the Fed will squeeze in one more rate hike next month and hedge funds are the most net short in nearly a dozen years.
That's a snapshot -- the "lay of the land," so to speak -- as the clock ticks down to another overdramatized US inflation report.
The mildly skeptical view on tech comes from JPMorgan's Mislav Matejka, but it could've come from anyone. Analysts expect to hear
As far as rates go we will know a lot more Thursday. It’s apparent now to almost everyone except for the fomc, some rate strategists and economists, that central banks have gone too far too fast in the other direction. We will be extremely lucky to escape with a short moderate recession. A hard landing is baked in the cake. Foam the runway.
We’ve known for a long time that the economy is headed for a recession (LEIs, curve inversion). And that the Fed prioritizes defeating inflation over avoiding recession (Powell’s been clear on this).
“Lopsided positioning can be fuel for a swing back in the other direction.” You can bet on it. Truer words were never spoken.