Pandemic Fears Intensify As Life Grinds To Halt, US Yields Grind To New Record Lows
Risk assets were once again beset with concerns on Thursday after Donald Trump's late-evening press conference in the US failed to allay fears about the global spread of the coronavirus.
It didn't help that the CDC confirmed the first US case of unknown origin literally while the president was responding to questions from reporters. Suffice to say nobody is particularly enamored with the idea of Mike Pence (who, last we checked, is not an infectious disease expert) leading the effort to combat
Heisenberg, have you seen situations where the rebalancing flows are delayed for an extended period of time, or is it considered mandatory for fund managers to do this monthly ?
How ‘bout a “Making great progress with China on BIGLY agricultural purchases. MAGA!” tweet this morning, just for old times sake…? 😀
SP500 at 200d, RSI went <20, high vol – time to wet a couple toes
Good luck with the bounce! Set quick stops. I’m already envisioning a “US Case Count” bug in the bottom right corner of CNBC’s television broadcast. That’ll be good for “sentiment”…!!!
Rebalancing flows and gamma are irrelevant in this type of market- at least for now. It is emotion and headline driven market. A classical mean-variance model would suggest with outcomes widely disbursed (higher variance/standard deviation) with the same prospective returns, risk assets are worth less. Plus there are many known/unknowns and flat out unknowns right now with this virus. Hence a lot of street commentary which is trying to game this out at this point are not much better than guesses. Listening to the street about the virus is like consulting a tax attorney on a constitutional matter before the supreme court.
Even in 2008/09, stocks didn’t go straight down…