@BehavioralMacro Bingo. Quick look at the Russian stock market and see a P/E of 8. Maybe not the base case for SPY but it's definitely in play. Amazing how many people are ignorant to this power grab when they've been setting it up for 10 years.
@BehavioralMacro I don't fully understand the risk/return trade. I'm assuming they do this across the curve & since they're long the bond and short the future it would be duration neutral. So, wouldn't they only be exposed to the spread b/t futures and bond widening but not both going higher?
@cullenroche@vac_capital@TidefallCapital Disagree with slowing immigration/deportation being deflationary. Lack of labor supply was a major driver of covid inflation.