Into And Out Of The New ‘Everything Rally’

On the heels of an exceedingly unfortunate three months during which both equities and bonds sold off simultaneously, some key investor cohorts were under-positioned. Meaningful exposure reductions left those investors vulnerable in the event of a rekindled rally. That was part and parcel of the "Santa melt-up" blueprint as sketched here early last week. Within days, US equity futures were 6% higher, spurred on by a sharp drop in long-end US yields. Equities notched their best week in a year a