Folks war is coming January Saw a collapse in U.S Equity allocation amongst Global Fund managers. In the latest B of A survey, we need to discuss what and why this is happening and what that tells us. Moving forward. Number two, we need to discuss the truth about where fund managers are actually allocating their money and why that is.

We'll show the data and the receipts. and finally number three, the global Elite Praise be upon their Holiness are meeting at Davos for the World Economic Forum and it's already getting hairy. What should you know? Time stamps down below and we'll get right to work after a quick plug. Today's video is brought to you by our MLK Junior 50 off sale on zip Trader U which expires at midnight tonight.

Type in coupon code mlk50 before checkout and get 50 off the one-time fee. Again, this coupon code expires at midnight tonight, so make sure to give it a look as soon as possible. The one-time fee gets you unlimited access to our step-by-step lessons, private chat, popular daily morning briefings, and others resources that you can learn more about with that link down below. Okay, so fund managers are now the most underweight Securities that they've been since October of 2005.

but why is that? Charlie Well, when asked what the biggest tail risks are, the number one answer is still inflation stays High although votes for that dropped a bit over December deep Global recession was number two Central Bank Staying hawkish Number three: Geopolitics worsening also increased and then you had a systemic credit event and coveted Resurgence at the bottom of the list. So despite the progress on the CPI in the late 2023 Fed pivot being priced into Bond markets. While fund managers aren't really feeling that much better about the main tail risks, although when asked whether they are expecting a stronger economy in the next 12 months, you did actually see that turn around a bit. It's still deeply negative.

Don't get me wrong, which means more people expect a weak economy than expect a strong one, but it has turned around a bit. We are almost approaching those lows that we had in the troughs of March 22 20.. So what is spurring this light turnaround here? Well, if you are in the boat that the FED is going to start stimulating in Q3 or Q4, you will also be more inclined to believe that we will have a stronger economy by then as well, right? And that's what you're starting to see these participants acknowledge. And one of the things that you haven't had yet is a narrative shift.

In order to move on to a new market narrative, you need to see the biggest tail risk transform into something else. Before this, you have the cough cough crisis and then sense. Essentially, March of 2021, you've had the Central Bank inflation scare with a few divergences, but mostly focused on Central Bank and inflation, right? So if you really want to see a broader shift in trading, you need to see the major underlying worry shift as well. And we just haven't gone there yet.

What's the next? big tail risk? Quarry Well, likely Global Recession. Once that happens, markets will stop caring about inflation and hawkish central banks. But Charlie The FED won't cut rates until inflation is at two percent. While I strongly disagree with that.

The FED will cut rates the minute a massive recession causes unemployment to start skyrocketing. Does it matter if inflation is at three percent, or four percent, or even five percent? They'll say this is the better of two evils: We must cut cut in order to save jobs and help support the economy. And that's what you are seeing. The Bond markets pricing as well, right? If you look at the percentage of fund managers surveyed expecting lower versus higher bond yields in 12 months, they've hit a convergence point where as of right now, slightly more managers think rates will be lower in 12 months versus higher in 12 months, and the trend is pretty clearly upward, So the majority of managers no longer trust the Fed's narrative that they'll keep rates high for the next several years.

That's a big shift, and if this trend upward continues, you're going to start seeing that impact the market as well. But what is the big money doing? How are fund managers allocating their portfolios? Well, in terms of positioning changes, you have a lot of fund managers adding to positions and utilities which have pricing power in both Bull and Bear markets and pay big dividends. add back into the Eurozone which is improving value-wise as compared to the immediate aftermath of the invasion and adding into emerging markets at a pretty big Pace as they expect them to bounce back with the weakening of the US dollar and reopened China pouring into Industrials pouring into discretion area which are companies like retailers, hotels, restaurants. overall Leisure My guess is probably because they are discounted I Would think that discretionary wouldn't be the top bet when entering a recession, but they seem not to care.

I think they're trying to scoop up those dips and get some good diversification. You have them going back into the UK Market insurance and Banks and then look at what they are reducing their positioning in Commodities and energy as they see down Trends in price. Consumer Staples as Supply chains heal and there's less profitability and price gouging over the excess input cost bonds as they get destroyed with higher yields. tech stocks as multiples continue to get crunched.

Health Care They are positioning out of probably taking profit because the healthcare segment was one of the best performers year over year one of the only segments size energy that was green almost across the board. and then you have a reduction in equities and a massive massive reduction in positioning in the U.S market. So why would the global fund managers completely obliterate their positions in U.S markets? Well, because in 2022, the U.S market was considered the closest thing to a safe haven as Ukraine saw the invasion and the rest of Europe went into an economic crisis with spiraling Energy prices and the strong U.S dollar destroyed a lot of the Emerging Markets. So fund managers sold Europe and emerging markets and poured into U.S assets, U.S equities, U.S cash, so on, and so forth.

And right now you are seeing a reversal of that with capital flowing back into the Eurozone and emerging markets and out of the U.S On top of that, the Federal Reserve has essentially declared war on the U.S economy, making it even more toxic for funds to hold U.S assets right? unless you're talking about USD. But of course, the USD is starting to sell off as well because they think the Fed's going to Pivot. So you kind of have the worst of Both Worlds And this is actually pretty historic. This is the biggest wind of U.S exposure since October 2005 and it shows no signs of slowing.

Next, let's go ahead and move over to the holy Elites at Dava. So the World Economic Forum The lovely Wef is holding their annual Davos meeting this week from the 16th to the 20th and the Wef gets a lot of criticism because it comes across as this meeting or the global know-it-all Elites prescribed their cures for what they see as wrong with Humanity for example, as you probably know, the whole Great Reset conversation stems from the Wef's Great Reset Initiative which said that we should just use the pandemic to focus on a reset. A wonderful reset. Yes, Yes, yes, that governments and Powerful corporations can work together to force on the little guy.

And unlike the democratically elected bodies that at least try to act like they give the little guy a voice. Well, the Wef has really only the unelected elites, and maybe at best a few democratically elected leaders depending on the year, but they aren't the ones setting the narrative most of the time. And to be fair folks, look, the Wef isn't technically a governing body itself, but it is sort of a pseudo one that applies social and virtue signaling pressure to the many Business Leaders who attend it. And because the attendees have a lot of combined wealth and power, you can see how everyday people like you are high might be suspicious.

More than 600 CEOs will be in town, including Wall Street Executives such as JP Morgan's Jamie Dimon, David Solomon from the sacks of Goldman and Morgan Stanley's James Gorman. Nearly one of four attendees are CEOs With some other big names like the leadership of Shell, Amazon, City, Group Moderna, and BlackRock You have some big universities like Stanford also attending and of course most of the media. So in totality, you have big Bank, CEOs, Tech, Leaders Media Oil, and University professors all coming together to come up with how they believe the world should be shaped and how that can be forced to be implemented on the populace. At least when Marie Antoinette had her ideas, she let us eat cake.

but these people would say no cake because that's bad for the environment only we get to eat cake here at the top. To me, this meeting always comes across as very pompous and arrogant. but fine. Maybe I'm just jealous because I'm not an elite and I don't have any power to force a reset.

But nonetheless, we are going to find out real soon, what the Davos Elite prescribed for the coming years and what the new theme of conversation is going to be for 2023? What is the next stage of this great reset that is going to completely remake the world in their image? We'll keep you updated. make sure to let us know your thoughts down below and today's video is brought to you by our ZIP Trader You program link down below which includes our step-by-step lessons, private chat, and our very popular daily morning briefings. Some of the best briefing ideas we identified the last few weeks include: HKD which was a 309 run briefing price to highs Triple B Y another massive run party Jasper Antf, Blph, and of course the Lovely Cola Now these are some of the best plays we've had the last few weeks and certainly not all of our briefing ideas run. That's not the point of them.

the goal is to make our members aware of catalysts and Trends before the rest of the market is a crucial part of success in this. Mark Market is timely research and drowning out the noise. And that's the goal of the briefings and we do that to the best of our ability. And if you'd like to join us right now, you are in luck.

In honor of MLK Jr we have coupon code Mlk50 which will get you 50 off the one-time fee. Again, this coupon code expires at midnight tonight, so make sure to give it a look as soon as possible. Anyways, folks that caps off today's video have a great rest of your day and we'll see in the next one.