The battle between optimism and pessimism is playing out in full regalia. After falling about 5.9% last week, the S&P500 rocketed 2.7% higher yesterday, putting in the best one-day performance in over 3 years. It seems that the institutional investors, who are the ones who really push price around, cannot seem to get a hold on what they should focus on. Is it trade? Is it the political controversy? We have our view, we think the dominant force at play is the changing liquidity landscape. Interest rates have been on the rise for some time now and we think they will trend higher over the next few years.
