Also, this continues to look like the trade of a generation.
They say that you shouldn’t kick someone when they’re down. But actually, that’s the best time to kick someone, while they’re already down.
That’s how I view this trade. A lot of those American index investors, who bought into the whole “Passive” investing scam, have way too much exposure to Growth and Tech, and almost no exposure to Natural Resource stocks, particularly energy.
This looks like the pain trade to me, simply because of the unwind in positioning.
Americans don’t own energy. They own growth. Take a look at the weightings of your favorite US Indexes. It’s pretty obnoxious really.
I still believe this is one of the better trades in the market. It’s working and we’re likely still in the early innings.
Mid-Month Conference Call Review