6 Comments
Oct 9, 2022Liked by Callum Thomas

These were some very interesting charts. Once again, you've delivered the goods that require thoughtful reflection. It's been said; You either pay attention or you pay the price!

I believe you are correct in saying; ...down is probably the path of least resistance given the bearish market + macro momentum.

Look out below!

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Thanks, I like that saying! Yeah, obviously I could be wrong if there is some sort of positive surprise e.g. more resilient economy/eps than expected, pivot/pause, geopolitical good news, China (covid/stimulus), etc. But the balance of observable trends/data point downwards.

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Looks like their is still time to reduce your equity exposure?

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Yeah, risks are a little more balanced vs Dec 2021, but still I see no reason to be increasing exposure at this point. Framework still leads me to AA mix that tilts towards bonds and cash

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I think key is whether the Fed will pivot / pause. And for now, the answer is not yet. So more pain. Until something big & systemic breaks or the Biden Admin forces the Fed.

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Yeah exactly, monetary tides are going out, economy rolling over, inflation still high (for now), and valuations haven't dropped enough to compensate for all that

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