WOTE Asset Management: December 19, 2023
WOTE Asset Management: December 19, 2023
I’ve seen enough. Time to get into final position for the January/February equity blow-off.
Disclaimer
In no way, shape, or form should my views and positioning be construed as investment advice. They are strictly for informational purposes only. I publicly document my personal investment process to apply as much pressure on myself as possible, not to convey advice to others, as everyone’s individual financial circumstances, portfolio positioning, investment process, strategy, etc are extremely unique. Every single piece of information communicated publicly and privately via The WOTE should be viewed as exactly that: a piece of information.
Discussion
As discussed in the December 14 flash update, the weight of the evidence has moved in a decisively bullish posture looking out over the next 2-12 months, and I positioned as such. However, I didn’t move the strategy suite into the maximally bullish stance called for by my positioning framework, as we were coming up on 12/15 OPEX and I wanted to see how the market digested the FED pivot. Initially, it appeared as though the Fed wanted to push back a bit on rate cut pricing. But as FED communication proliferated since 12/13 it quickly became clear that Powell’s pivot was the FOMC consensus. Mary Daly has been a critical communication vehicle for Powell this entire tightening cycle, so the fact she came out in support of at least three rate cuts in 2024 formally solidified the pivot. As such, I’ve seen enough to move into a maximally bullish position ahead of a parabolic move in equities into January/February.
Yesterday’s FED note outlines well the exceedingly bullish outlook for stocks heading into 2024:
