Q3 was one of the sharpest hedge fund degrossing period over the past decade.
Prior ones occurred near major market bottoms. We may get near-term turbulence but odds are elevated for a multi-month rally.
Chart GS
MYTH: Recession lands when yield curve uninverts
REALITY: Not so fast...
During inflationary era (70s and early 80s), FOUR recessions landed whilst yield curve was still inverted because the Fed stayed on hold for longer in order to fight inflation
Chart @ycharts