Worst riots since ‘68. Worst economy since 1930s. Worst pandemic since 1918. And Mr. market thinks all is well.

The apostles of “value investing” have called the top of the Covid-19 equity rally.

The closely watched GMO fund has been liquidating its holdings on US and European stock markets and buying hedges at a breakneck pace over recent days, warning clients that the explosive surge in prices since late March has decoupled from fundamentals and is becoming treacherous. “The huge reversal does not make any sense,” it said.

The group’s main fund has turned short, taking large negative positions on equity indexes through futures contracts. “It is going to be very difficult to come out of this pandemic unscathed. We have a pretty strong view that with so much extreme uncertainty, equities should be cheap. Quite simply they are not,” said Tommy Garvey, GMO’s asset strategist….

twitter.com/xtrends/status/1266818233388204032
CITIES BRACE FOR INCREASING UNREST
SPIRALING OUT OF CONTROL
 

 
Alright. I’m going to short the market. More structural societal issues going on. Bad for enterprise

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