The Market Ear with the note:
Time for chilly growth
Wilson Sunday: “Truth be told,as one of the more hawkish strategists on the Street last December, I never would have bet the Fed would be doing multiple 75bp hikes this year, but here we are. Don’t fight the Fed….make no mistake, as the weather turns chilly this fall, so will growth, which will weigh mightily on stocks given the paltry ERP investors are getting paid to take this risk.”
Discretionary positioning crashing further
The gap between discretionary positioning and the ISM is getting very wide. DB notes: “Discretionary positioning tends to be closely tied to indicators of macro growth such as the ISM. At current levels, discretionary positioning is commensurate with a steep drop in the ISM to 47…the gap between discretionary positioning with growth which has held in is in fact slightly larger than at the June market low”.
