Fredrik

Self-Defeating Stimulus Packages: Retaining Short Bias for S&P 500

'The equity and bond markets have obviously built up a degree of underlying optimism' - I'm curious to learn in which security prices you are seeing this? I can only see deflation being the overwhelming consensual position in the various securities markets I look at. That said, I think you are correct in being critical of the stimulus packasges being announced. However, the discussion whether it is 'right' or whether we can afford it is in my opinion irrelevant for the next couple of quarters because the cash is regardless being injected into the economy and it will reflate it. I would not be short during this period, better review the short case around the Q2 stage.