Tariff Drama Activated Equity Market ‘Doom Loop’
Remember: Volatility and liquidity tend to be inversely correlated. That’s part and parcel of the
Remember: Volatility and liquidity tend to be inversely correlated. That’s part and parcel of the
“Some of us sell-side macro commentators might be more predisposed to hyperbole than others.” So
Some unlucky folks on the buy-side might be trapped in a “doom loop” with little
Name something more potentially dangerous than “a large, fundamentals-agnostic, owner of equities.” Go ahead, I’ll
Coal mine canaries?
“Come play with us Danny”…
“Come and play with us, Danny”…
It’s all about “loops” and “spirals” these days.
When the proverbial shit hits the fan, don’t blame risk parity and the trend followers. Rather, point the finger at the Target manager next door.
According to the latest read on this, the potential for an ETP rebalance to cause problems is still near record highs.
“With VIX futures several points below their historical average, a several point move would not be a tail scenario.”
“This vega-to-buy is at a record highs, almost doubling since mid-July on inflows to short VIX ETPs.”
That is all kinds of precarious for all kinds of reasons that should be obvious to anyone with any sense.
Listen, there is a non-negligible chance that you have unwittingly sowed the seeds of this
Remember “Investigating The Market’s ‘Nightmare Scenario’”? Of course you don’t. That post is from May
” We take the contrary position and believe that a big devaluation might turn out instead be the final straw on the camel’s back of China’s credit bubble, leading to an even greater crisis.”
What could go wrong? Snarky macro commentators with misplaced pretensions to cleverness are quite fond
Early Monday, I revisited “doom loop” dynamics. A fixture of modern market structure is the
Liz Truss was in the news Thursday. Apparently, it’s illegal to suggest she crashed the
There’s a bull market in political polarization. In turn, the political center — “the establishment,”
Earlier this month, PDD founder Colin Huang usurped water baron Zhong Shanshan atop the list
The rumors weren’t rumors. Joe Biden dropped out of the 2024 presidential race on Sunday
Equity bears are caught in a kind of insanity loop. Generally speaking, bear cases fall
They’re hedging downside again. A little bit anyway. For months, the options space was defined
Why do selloffs accelerate? In modern markets, the answer to that question is very often
Increasingly, funds are concerned they might miss the proverbial boat, and one bank’s client conversations
The UK’s inflation problem isn’t getting better. “These figures reaffirm exactly why we must continue
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