Ultimately, there can’t be normalization without exposing markets to the same concerns as the citizenry at large. The divide in levels of being appalled by goings-on is dangerous and as much a fuel of populism as other, more obvious causes.
That’s from former FX trader Richard Breslow’s Monday missive and it underscores what is perhaps the most important dynamic at work in markets today.
Indeed, everyone from the quants and derivatives strategists of the world (e.g. JPMorgan’s Marko Kolanovic and Deutsche Bank’s Rocky Fishman) to mainstream pundits is pounding the table on the disconnect between rampant and seemingly endemic geopolitical and policy uncertainty and market gauges of fear (read: volatility).
Well, here’s to beating a dead horse and to showing you, for the umpteenth time, how truly disconnected markets have become from, as Breslow puts it, “the citizenry at large”…