A Glaring Disconnect Or, The Most Important Thing You’ll Read All Day
To this day, one of the least appreciated dynamics in markets is the extent to which central bank liquidity is the proverbial rising tide that lifts all boats.
Sure, the Street gets it. And yeah, traders get it. But market participants in general do not appreciate to what they owe their post-crisis returns.
And that's weird, because this is hardly a fucking secret. In fact, central bank go out of their way to shout about it every chance they get. That's what "forward guidance" is.
Even among
I wish I new what DM means…
developed market
When I was in college in the 80’s & started trading commodities my broker – an old guy- first clued me in to the drying up of liquidity during panics, drawdowns etc. It really is the bigly picture