Bad, Good, Whatever
Here's hoping bad news is good news.
US consumer confidence slid in August and an underlying gauge of expectations slipped back near levels that historically presaged recessions.
That sounds like an unfortunate development, but at a time when markets are palpably concerned about the read-through of a resilient US economy for monetary policy and the neutral rate, a disappointing look at the consumer might be just what the doctor ordered.
The Conference Board's gauge printed 106.1 for August, 1
Please don’t spare us the jokes, the perfect amount of witty snark is one of the things that make your site special
What happened to the Gamma trade sell off? Wasn’t that expected to precipitate a massive cascading downward spiral of lower equity prices?
Well dealers are long gamma again. And remember: Short gamma works both ways. It can mean selling begets more selling but it can also mean buying begets more buying. And dealers’ gamma profile is shifting all the time. In other words: It’s really not something that everyday people should be troubling themselves with if I’m being totally honest. It’s an important part of the market structure / flows discussion, but 99.99999% of people would do better to just buy a Vanguard index fund and check on it every 10 years. If I’m even more honest: All of this stuff is almost completely irrelevant for average investors. In my opinion, people should just put their money in Jack Bogle’s legacy and go about their daily lives untroubled. (Not investment advice. Consult your financial advisor. For entertainment purposes only. And all the other caveats.)