I think this exactly illustrates the benefit of BTD over shorting. FED has asymmetric reaction to inflation vs. economic stress/recession. What is strange to me is the repricing of rates higher really didn't affect duration equities much it was the banking crisis that did and it lasted about one week before ripping higher. I can see a similar situation playing out when the fed really does start cutting rates, new ATH would come despite a slowdown.
These are the guys you expect not to drop rates (to zero) when data even starts to turn sour? These are the people you expect to watch the economy crater and let it burn in the name of price stability? Potentially in an election year?
Thanks for insights into conditions affecting performance across various sectors
I think this exactly illustrates the benefit of BTD over shorting. FED has asymmetric reaction to inflation vs. economic stress/recession. What is strange to me is the repricing of rates higher really didn't affect duration equities much it was the banking crisis that did and it lasted about one week before ripping higher. I can see a similar situation playing out when the fed really does start cutting rates, new ATH would come despite a slowdown.
These are the guys you expect not to drop rates (to zero) when data even starts to turn sour? These are the people you expect to watch the economy crater and let it burn in the name of price stability? Potentially in an election year?