Kolanovic Sees Portfolio Rebalances As Possible Stock Tailwind, As Monthly Impulse Overwhelms Quarterly Flow

Kolanovic Sees Portfolio Rebalances As Possible Stock Tailwind, As Monthly Impulse Overwhelms Quarterly Flow

Earlier this month, JPMorgan's Nikolaos Panigirtzoglou flagged the potential for some $200 billion in rebalancing flows to derail equities in the weeks ahead, given stocks' outperformance to fixed income in the third quarter. The impact of rebalancing flows varies depending on market conditions, including liquidity and, obviously, who else is buying and selling. In some cases, the impact can be quite dramatic. One particularly notable episode was the buying that took place at the end of 2018, w
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2 thoughts on “Kolanovic Sees Portfolio Rebalances As Possible Stock Tailwind, As Monthly Impulse Overwhelms Quarterly Flow

  1. Further divorcing stock prices from the underlying corporate and economic performance, except tangentially via interest rates. Substitute oil for bonds and smoked ribbed rubber futures (KL) for stocks – what’s the difference?

    But it’s the reality on the ground and I am thankful to our Dear Leader for keeping us apprised.

    1. Correction. It doesn’t look like ribbed smoked rubber futures are traded in KL anymore. Now they’re traded in Bangkok. I’m sure many of you were wondering about this.

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