The Late-Cycle Contrarian

Published on
August 29th, 2019
43 minutes

The Late-Cycle Contrarian

Investment Ideas ·
Featuring Charlie McElligott

Published on: August 29th, 2019 • Duration: 43 minutes

Charlie McElligott, managing director of cross-asset strategy at Nomura Holdings, sits down with Ed Harrison to examine the recent equity market volatility. He argues that both hedge funds and pension funds are crowding into an end-of-cycle-trade — anticipating that U.S. interest rates going to zero. McElligott runs down the contrarian bet and looks at the other side of the crowded trade, specifically mentioning Treasuries duration, and out-of-the-money options. McElligott also talks about a potential September equities drawdown. Filmed on August 26, 2019 in New York.