McElligott's Thoughts On The Doomsday Scenario

Before we take a look where Nomura's top cross-asset strategist thinks we are going, let's spend a few minutes on where we are, and that, according to Nomura's Charlie McElligott, is in a world where the “high sharpe” expressions which keep working are some mix of “The Same Trade”: Long Stocks + Long Commodities / Long Trend (Long Commods / Short Bonds) + Long Equities / Long Energy Eq + Long AI Bottleneck Eq “Barbell.” One end of the barbell goes, with the other serving as a source of funding. The next day, it's vice versa. Rinse. Repeat.