Charlie McElligott on How Long the Stock Market Rally Can Go

In a live recording of the Odd Lots podcast, hosts Tracy Alloway and Joe Weisenthal interview Charlie McElligott, a macro strategist at Nomura, about the current state of the market and volatility. McElligott explains why the market is at all-time highs despite global uncertainties, pointing to factors like underpriced "less bad" outcomes, the surprising earnings catalyst of inflation, and corporations prioritizing buybacks over capital expenditures. The conversation explores the phenomenon of selling volatility as a new form of fixed income, the impact of conditioned "buy the dip" reflexes, and the role of market structure and options trading in driving momentum. McElligott warns that the market may be nearing a crescendo, with conditions ripe for a potential crash, driven by factors such as a weakening labor market and a possible dovish turn by the Federal Reserve.