Trader: ‘Everyone Else Is Going To Be Left Holding The Bag’
Ok, well former trader Richard Breslow is out with his latest and he's got a thing or five he wants to tell you about central banks and markets. What you'll read below is in many ways similar to the notion that excessive policymaker transparency is fostering dangerous feedback loops in markets by effectively making it impossible for anyone to form a long-term view. This concept was expounded most effectively and most eloquently late last month by Deutsche Bank’s Aleksandar Kocic. The only di
7 thoughts on “Trader: ‘Everyone Else Is Going To Be Left Holding The Bag’”
Everything the Fed does will be in SLOW motion. No need to panic about unexpected decisions from them, no matter who the chairman is.
Agreed. But something’s gotta give sometime, and when it does it’ll likely happen fast, all the more so with the algos & machines accounting for much of the trading volume nowadays. Of that I’m confident, but I’m less confident about the direction of the next big move in some markets except volatility which is tightly coiled for many assets. The nascent sovereign debt crisis is the wild card.
Will be slower than SLOW………doesn’t matter who the new FED Chief is.
The good news is that CDOs are back, with CDS as collateral.
I’m looking for a big break in the stock market by Friday.
I puke a little each time a writer uses the haggard cliche, “fools errand”.
Hey Paul, He made up for it by ending with No Exit – in French.
Unfortunately, I foresee there is an Exit – the one for fires.
Richard makes good points about things that every trader would embrace, like how forward guidance and suppressed volatility are actually counterproductive for markets, at least outside of a crisis (which passed eight years ago. But sadly, a bunch of central bankers like bernanke and his lot of doves including Powell, don’t really see it that way and based on their actions, appear to believe the opposite. Because they don’t understand markets because they’re mostly academics who never worked at a real job in markets.
Powell is a damn lawyer. Not a trained economist. Not a trader. What a farcical, waiting-to-happen accident putting that misfit in charge. No wonder Fischer quit this month. Trump is as incompetent for nominating Powell as Bam-bam was for appointing him. Government of any stripe is an insane asylum.
anyone else recall Irb telling us all that Powell was the right choice only a few weeks ago?