“Sell the last Fed hike”

BofA sums up the village idiot market.

The cognitive error investors are making is assuming markets are collective discounting mechanisms that are rationally governed by fundamentals, while in reality, price action is determined by psychology, reflexive feedback loops and positioning.

Equities in particular have been continually taught in recent decades that central banks will come to the rescue, that risk is not real, that buying dips is a source of alpha, and that the biggest pain trade is to be underweight the market.