Archegos Positions Slide Amid Fears Of Stealth Prime Broker Deleveraging

All of the above considerations are why McDonald has decided to cash out for the time being:

There are times to take on more risk and other inflection points which whisper into the wise man’s ear, “reach across the velvet and pull some chips off the table." This is one of them, let the mad mob chase. For much of the last six months we have been in the growth to value camp, pounding the table on the migration of capital running out of Big Tech over to equities in the commodity sector. As most of our long term clients know, we have never been more bullish. Our focus has been on rotation - NOT a drawdown leaking across asset classes.

Today, we must make a stand. It’s time to take down risk positions across the board and let the fools chase.

Then again, one look at what stocks did today and it appears that fools are now firmly in charge.

Which is why we leave the last word to an equity PM and member of the Bear Traps chat room who summarized the situation perfectly:

“Insane bubble, like mania, like madness. We just have to review the family office chap running a position of $100B (estimated numbers). He dropped $15B of equity -his NAV -and banks lost a further $10B as they executed stop outs... These are insane numbers of a gambler...Yet it’s brushed off after 24 hours and it’s back to buying...

Couldn't have said it better.

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