The Mystery Of Oblivious Stocks
Recalcitrant stocks are "baffling" Wall Street, declared a Bloomberg headline.
It was an accurate, if slightly overwrought, description of the current market conjuncture. Equities steadfastly refuse to succumb in the face of an extreme hawkish repricing across the US rates complex, where expectations for peak Fed funds have risen some 40bps this month, while the implied odds of meaningful easing in the back half of the year have receded.
As I put it in Friday's weekly+, it's important to ackno
I assumed stocks are currently levitating due to FOMO (career risk as you call it) and the proliferation of 0DTE options which you’ve mentioned in a few recent articles.
How about just plain “casino” like behaviour? Maybe, stocks are just casino chips and nothing else.
No Landing has a “Langoliers” feel to it. Everything is going to have to go right to avoid something really unpleasant later this year.
For Mr. Average Joe who’s trying to keep up with inflation, hasn’t seen a high yield bond since Mortgages were 20%, and considers banks as a joke for returns on investments, what else is there???
No where do i see mainstream mentions of liquidity injection by cb (BOC/BOJ/ECB) since late last year might have something to do with this. Surely major banks all see this flow – Yet they’re happy to perpetuate the narrative that stocks over valued, when they’re the ones buying it higher via flow/ front running.
“Nowhere.” Really? Reuters ran an article about this a few days ago, and any other place you might’ve seen it got it from one of the very same major banks you’re talking about, which covered it in a slide deck released two Sundays ago and an accompanying note, which I’m sure at least a few “alternative” sites who aren’t supposed to have access to those notes hijacked for click bait.
Your contention that major banks are getting the “flow” and buying stocks with it for their own account has no basis in reality.
Be careful where you get your information.