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A New ‘Strategist Short Squeeze’ Looms As Stocks Eye Records
Remember the "strategist short squeeze"?
In June and July, when markets melted up following Nvidia's game-changing Q1 report and the resolution of the debt ceiling standoff, US equities got away from the people whose job it is to forecast them. At one juncture, the disparity between spot equities and the average year-end Wall Street target was around 300 points on the upside, a remarkable development given that typically, strategists' targets are above spot -- they tend to forecast gains for st
Recently we’ve been fielding a few queries from clients whose judgement we respect = people who did well in non-financial businesses. They have asked if we should be taking some money off the table after this rally.
Houthi attacks on Red Sea shipping starting to affect shipping and oil prices. Maybe investors will start to care about the war in the Middle East after all?
It is interesting we’ve seen no strikes by US or others on Houthi missile/drone forces.
Saudi were urging the US to show “restraint” vs Houthis, I thought it was to avoid Houthi retaliation vs Saudi oil facilities but perhaps Saudi is also not unhappy about Houthi-triggered oil price move.
If I understand it correctly, Egypt is a primary loser from disruption to Red Sea shipping. Is US inaction in the Red Sea deliberate, to pressure Egypt/other countries?
I just read a couple hours ago that the US will be adding more warships to its Red Sea presence. Pretty hard not to as going around the Horn is adding much cost to US shippers trying to get goods to Europe and the US East Coast.
I think the US has/will have ample military force in the area, the issue is disagreement among Arab countries (reading UAE seeking action vs Houthis, Saudi wants restraint), possibly some intent to pressure Egypt and/or Arab countries (my speculation only).
Either way, it doesn’t make sense for US/other navies to escort merchant shipping while allowing Houthis to freely continue firing missiles/drones; destroyers don’t carry an inexhaustible supply of anti-missile missiles.
Seems like supply chain disruption is greater for imports to Europe than to US (shift to West Coast ports).
Most major shipping lines are now refusing to sail in the Red Sea.
There’s some 3d chess being played with geo politics right now, you have to wonder who’s pulling the Houthis strings, very convenient timing…..