A Very ‘Significant Development’
Last week, in "Too Hot," I insisted on the idea that the trek higher for US real yields is unfriendly to an equity rally built on multiple expansion among richly-valued, long-duration growth shares.
Generally speaking, rising reals can be conceptualized as kryptonite, or gravity, for high-flying stocks untethered from the fundamentals. And rates are anyway a fundamental input.
For all the attention paid to America's "Magnificent 7" (which together added the market cap equivalent of the German
The question is how many active managers and speculators in futures are still underperforming because they aren’t long enough? When they’re done, the party is over. They buy because they have to , not because they want to…Kind of like when you are long something and it goes down a lot, you have to sell it to keep your job, even though you’re making the bottom…