Happy Anniversary

The bear market bottom was five years ago today. (No bells rang, but there were some whistles.) At pixel time the S&P500 is up 182% from the intraday bottom. Including dividends, total real return would be about the same. That’s a real CAGR of 23% for five years running. Wow.

Today it’s reported that the dominant trade – the “shoeshine boy” position – is shorting volatility. (*)

OK, not sure we’re into shoeshine boy territory, since there are so many reports of the retail investor staying on the sidelines and being “underinvested” in equities.

Either way, times they are always a changin’.

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One Response to Happy Anniversary

  1. I’m not quite sure what a shoeshine boy trade is, but it isn’t hard to be up in this market. It pretty much sucked to be fully in 5 years ago, but the recovery since has been somewhat steeper than I expected.

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