Is It Time To Start Shorting The Market? | Kevin Muir

Asset price volatility threatens to spike higher than markets are prepared for

On the famous fear/greed index, after spending most of the past year and half in "greed", we've suddenly switched to "fear" over a very short time frame.

The S&P has broken below both its 20 and 50 Daily Moving Averages.

Inflation printed hotter than expected, making Wall Street start to doubt the Federal Reserve's ability to deliver expected rate cuts.

And geopolitical tensions have puckered tighter following the escalation of hostilities between Iran and Israel.

Is the exuberant sentiment that drove the past year's bull market now gone?

Or is it just taking a breather before continuing to climb what has suddenly become a much steeper Wall Of Worry?

For answers, we're fortunate to speak today with market veteran Kevin Muir, founder and editor of The Macro Tourist, the highly-acclaimed newsletter that currently ranks as the #12th largest financial Substack in the world. 

Kevin is very focused right now on how asset volatility is rising, likely soon to a level markets have not priced in.

Which is why he’s currently “net short” in his portfolio.

To learn the details why, click here or on the image below:

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MACROPASS THIS WEEK

This week’s MacroPass report (available to premium subscribers) is one provided by Kevin explaining why, despite his aversion to most other stocks today, he sees increasing opportunity in Chinese equities.

To access it, click here.

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Adam’s Notes: Kevin Muir (recorded 4.16.24)

Executive Summary:

• Kevin sees a notable disconnect between the performance of the global economy and financial markets. While the global economy could exceed expectations from here, he warns that this doesn't necessarily translate to positive outcomes for the financial markets. He specifically cites concerns about overvaluation and the possibility of a correction, particularly in light of heightened volatility triggered by events such as unexpected inflation readings.

• Kevin predicts an increase in market volatility leading to position reductions by market participants. He highlights the influence of