Speculative shorts in bond futures are at extreme levels. The crowd may be right, but if there is not a Democratic sweep in the election, the short covering could be equally extreme. Click here to read the entire article on Forbes.
As we get closer to the election, sector performance and volatility divergence in the equity and credit markets is growing. The post-election macro outlook is likely to be dominated by sector and asset class rotation rather than out-sized moves at the broad index level.