MBCC TH 22nd December'23 - "Yellen just delayed the massive US fiscal deficit issue, but it is not forgotten - what to expect in q1 and is the market positioned for it - it is ALL about liquidity!"

As the markets bottomed in November, Yellen was the cause as she announced a very sneaky change in the quarterly issuance of bonds weighted more towards Tbills in the front than the back end. Most who trade equity markets, just look at charts and congratulate themselves for buying the dip, as it has worked. But make no mistake, there are larger forces at work providing that confirmation bias and timing that is important!

Nothing moves in a straight line…top slicing and adding at lows is what leads to alpha!

So before the stale bulls rejoice, remember if you did nothing and just waited since 2021….you are only FLAT now!

The next BIG catalyst … and NO ONE is even positioned for it….this year has taught us to expect the unexpected especially when everyone is so one-sided!