In today’s briefing:
- Achieving Stable Alpha in a Chaotic Bear Market
- The Nine Reasons Why You Should Be Equity Bearish
Achieving Stable Alpha in a Chaotic Bear Market
- While we are intermediate term cautious, our working hypothesis for the near-term outlook is a choppy market, but the S&P 500 is unlikely to breach its 2022 lows.
- It is with this chaotic environment in mind that we suggest pairs trading as a more risk-controlled way of finding better returns.
- We will update all of the pairs periodically. Feedback and expressions of interest are appreciated so we know how much resources to devote to the regular update to this strategy.
The Nine Reasons Why You Should Be Equity Bearish
- A review of a variety of market-based signals lead to the conclusion that risk asset prices are headed lower.
- The combination of hawkish central bank policy tightening into a cyclical downturn is the recipe for an equity bear market.
- The only hope for the bulls is better news on inflation which will slow the pace of accommodative policy removal and change the economy’s flight path into a soft landing.
Before it’s here, it’s on Smartkarma
