Macro Tourist Markets

The Market Got It Wrong In 2008. Are We Making The Opposite Mistake In 2020?

"One needs to be careful not to simply be contrarian for contrarian’s sake, but..."

[Editor’s note: As many readers are likely aware, fan-favorite Kevin Muir – formerly head of equity derivatives at RBC Dominion and better known for his exploits as “The Macro Tourist” –  recently transitioned his daily letter to a subscriber-only format. On Friday, I asked permission to republish his latest, which he granted on a one-off basis. The following is available exclusively to his subscribers and mine.] I would like you to remember back to 2008 when Ben Bernanke cut rates to zero and instituted quantitative easing. Remember all the worries about “hyper-inflation?” In trying to find an article that captured the zeitgeist of the moment, I stumbled on this John Williams June 2008 article titled, “Hyper Inflation Special Report”: Before you send me a note about how John Williams has extreme opinions, don’t bother. I get it. I know that not everyone believed the US would descend into a “hyper-inflationary great depression.” However, at the same time, there can be no denying that many market participants were worried about increased inflation from Bernanke’s novel policies. In November 2010, serious folk, including Cliff Asness and Jim Cha
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