Summary of FACE Interview Nov 28th 2022. Andy said the Rally in TNotes was short covering by CTA's.

00:00:00 - 00:20:00

Andy discusses the recent rally in the markets and how it may be due to short sellers covering their positions. He also discusses his outlook on the UK and the Eurozone, and how he thinks metamorphosis can be a good thing.

• 00:00:00 Andy discusses the importance of risk premium and how it has impacted markets recently. He also discusses how his outlook changes depending on how much quantitative easing is done and how much issuance is done. Finally, he provides an explanation of a "seven Sigma event."
• 00:05:00 Andy discusses how the rally in the markets may be partially due to short sellers covering their positions, and how this could lead to an eventual recession.
• 00:10:00 The speaker points out that short sellers were forced to cover their positions after the rally in TNotes, and that the rally in stocks is likely due to the re-entry of long-only funds. He believes that the rally in bonds is a short covering rally and that the equity rally is less interesting.
• 00:15:00 Andy says that he is bearish on the UK because of the weak fundamentals, and that he is more focused on the fundamentals than on the positioning in the market. He also says that the Eurozone is still too easy, and that equities in Europe will outperform bonds.
• 00:20:00 Andy discusses the rally in TNotes and how short it was, noting that the rally was likely due to Central Bank intervention. He also discusses the possibility of another rally in gold, and how he isn't sure if he would be able to make a call on it. He finishes by sharing some of his thoughts on markets and how metamorphosis can be a good thing.