Goldman Delivers Ominous Message: ‘Markets Themselves’ May Pose The Greatest Risk

As the punditry continues to insist that because the fundamental backdrop is sound, nothing too bad can happen, people seem to have learned nothing (or very little) from the technical selloff that unfolded early in February. The events that transpired on Monday, February 5, laid bare the risks of modern market structure. The rebalance risk inherent in the structure of levered and inverse VIX ETPs was realized and amid the turmoil, liquidity seemed to be sparse. The concurrent VIX spike (the l