Too early to short stocks as flows overpower macro risks – Nomura

Nomura strategist Charlie McElligott warns it’s still too early to short equities as positioning and active flows continue to prop up prices despite rising macro risks. Investors are rebuilding exposure, and inflows/positioning dynamics are currently overpowering fundamental headwinds, supporting near-term gains in the US SP 500. The note implies fragility beneath the surface — macro threats remain — but market structure and flows make significant downside via shorting unlikely in the immediate term, benefiting broad-market benchmarks and related ETFs.