Before I talk about market action being straight from the “pro-labour” handbook, a bit of housekeeping. First, I have revamped the Brumby Capital website - go take a look. Secondly, I am now on Slice, where I do quick posts on markets every day. This is aimed more at the “trading community” - and I am offering a 6 month 50% discount - use code Rusty50. As an example, I suggested shorting ZROZ has an alternative to TLT a few days ago. Good trade! I am wearing my trading hat as I type!
At the core of what I am doing with Brumby Capital (and what I used to do back in Horseman and RCIM days) is look at where the market is mispricing risk, and build a strategy that benefits from the recognition of that risk. The strategy at its core is saying that markets are radically mispricing inflation risks, and that we are moving to era with a dearth of capital, and that the cost of capital will rise. The implication is that we have days like today.
