Low Conviction, High Crosscurrents — With Danny Kirsch

Low cross-asset correlation and AI-driven concentration have made the S&P a poor hedge, pushing sophisticated investors toward targeted shorts in banks and staples.

• Low conviction, high resilience: Danny Kirsch says investors want to be bearish amid rate hikes being priced back in and oil staying elevated, but correlations are so low the S&P keeps grinding near highs.
• S&P 500 no longer hedges well: Despite poor efficacy, investors keep using it for liquidity; Kirsch's desk favors buy-one-sell-two put structures and targeted shorts (KRE regional banks, EUFN European banks) instead.

Themes, sentiment and reasons are AI-written paraphrases, checked so they never quote an episode. They may contain errors. Not investment advice. Episodes remain the property of their creators.