In our view, with geopolitical risks on the China/India border and wave 2 risk on the rise, the market is beginning to trade very similar to February.

Bonds are bid, oil is fading lower, cyclical equities like small caps are underperforming large cap peers, and the big-tech seems immune. Nasdaq outperforming by 160bps over small caps today clearly indicates that deflation’s bets are rising / coming back onto the field.

Produced in partnership with The Bear Traps Report / Bastien Chenivesse