Shaking The Edifice
Although things had an "all's well that ends well" feel to them by Friday afternoon, when rates had largely stabilized and US equities were busy logging one of their best sessions of the year, last week offered up some harrowing moments.
March of 2020 was a reminder that "harrowing" is always a relative term, but the hottest US core inflation read in decades (and the hottest headline print since 2009) rattled market participants and stirred the proverbial pot in an environment already ripe for
OK, now you’re making me nervous. What you have been doing for many months is describing the incredibly complex world casino of derivatives and CTA strategies that seem to indicate that there are a few grownups out there who know what they are doing. McElligott’s recent remarks, as reported in your recent posts, as well as your comments, are beginning to indicate that the current situation may actually be getting away from the “sufficiently smart” members of the Matrix that have been protecting us poor punters. That prospect creeps me out because it is clear that to technically rich investors such as myself, there is no real good hedging option.
Cash.
I am 12% in cash and I won’t say I haven’t thought about this, but I don’t want to just throw away my capital in gains taxes and I’m living on my returns.
Oh my, my lucky friend. Capital markets exist to bring investors and entrepreneurs together! Of course all of the risk parity “investors” and CTAs referenced by McElligot are focused on the paramount goal of funding innovation and growth in our economy!!
Relax and sleep well.