Exceprted from Archaea Capital letter to investors,
Blind faith in policymakers remains a bad trade that’s still widely held. Pressure builds everywhere we look. Not as a consequence of the Fed’s ineptitude (which is a constant in the equation, not a variable), but through the blind faith markets continue to place on the very low probability outcome – that everything will turn out well this time around.
And so the pressure keeps rising. Managers are under pressure to perform and missing more targets, levering up on hope.