Wall Street’s Most Famous Bear Explains How Stocks Avoided The Worst

Contracting liquidity was supposed to pressure US equities during the dog days of summer and into Q4. It didn't quite work out that way. Stocks did sell off over that period, and meaningfully so, but not for the reasons some bears anticipated. Instead of liquidity drain, it was a back-up in long-end Treasury yields catalyzed by the term premium's dramatic, ~150bps ascent out of negative territory that undercut the equity melt-up. Fast forward to November and stocks have largely recouped three