Good morning everybody!

Yesterday, we experienced a challenging day in the market, with the USD rallying, yields climbing up, and stocks facing widespread declines. However, there was a notable exception – the Dow Jones index managed to end the day in the green. It seems we made the decision to close our long AI beta position and instead go long on cyclical/industrial sectors has been well-timed.

To be completely transparent I had to take some convincing to go long AI as the US Equity market this quarter looks like a dumpster fire in the making, and I am still somewhat ambivalent about being long equities- but there are plenty of positives in the US economy to back our recent book-adjustment:

Atlanta FED Real GDP tracker is ticking up (we are releasing a piece on GDP vs GNI later today which may undermine the optimistic impression of the chart below. Stay tuned)

Chart 1: Atlanta FED Real GDP Q3