Market Brief: The Schrödinger’s Cat Market

NOVEMBER MARKET PERSPECTIVES IN BRIEF: THE SCHRODINGER’S CAT MARKET

In our most recent market update we build on the notion that the market is two places at once, arguing that the bull market is like the famed paradoxical thought experiment, Schrödinger’s Cat. Just as that hypothetical feline was in two states at once, we see the market as being both early cycle, just emerging from a recession with lots of room for improvement, yet late cycle due to full valuations and increasingly ravenous risk taking. We think massive Fed and central bank intervention has caused this early cycle/late cycle paradox.

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