The announced ceasefire framework removes a tremendous amount of left-tail risk from the market, raising the mean and median of probable economic and market outcomes, leading to risk-on pricing.

Black Swan events are just really bad risk-off market regimes. When you move left-tail risk from the distribution, you get a higher mean and median.

The fundamentals of the economy are still strong, earnings are strong, and the Fed seems accommodative. Growth, monetary policy, fiscal policy, and liquidity are all tailwinds, making a sustained trend of risk-on markets highly likely.

One must look past recent news flow and focus on fundamentals. As long as the key macro tailwinds persist, the risk-on trend is likely.

As systematic investors, 42 Macro's quantitative systems caused de-risking over the past six weeks. With the removal of left-tail risk, those systems will likely start to re-gross and add exposure, which is an appropriate fundamental move.

Endowments should leverage their ability to get paid by beta instead of chasing fancy alternative asset classes, using smart beta solutions like trend-following overlays to chop off the left tail and create a positively skewed return distribution.

This is the same competitive advantage retail investors have. A sophisticated trend-following overlay allows for faster compounding of returns.