The North Star vs. Liquidity

Revisiting Nash During the 'Ceasefire'

The recent bounce in risk assets has all but unwound the decline in equities and credit since the Iran war began, confounding traders in the process while confirming the temptation among many to “look through” to an end of the war and its supply chain disruptions. When you start seeing charts like this everywhere, it’s safe to say the proverbial “Wall of Worry” and grind higher is looking all but inevitable to most investors, and that once again the right thing to do was to just hang on or buy more.

Color me the proverbial wall of worry, but no this won’t be an onslaught of bear porn. Actually I don’t have a strong take for you or obvious trade. Rather, I want to articulate a concept I have been called the North Star as well as a subject I have not discussed in a long time, namely, liquidity. I’ll wrap a positioning review in at the end.