It may be time to question your religion.
“Last week’s twin 1,000 point plunges on the Dow were not errors.”
Is this it?
Welcome to Friday.
Or at least that’s what it feels like.
“I am 99.90 bid the 0.10%’s of 27.”
“OK, paying 90. For how many?”
“I don’t believe that for one second.”
“…never in modern financial history has a Central Bank expanded its balance sheet through quantitative easing and then successfully shrunk it back down.”
“The next great crisis will be caused by Central Bankers not realizing that all this monetary fuel they have pumped into the system has finally ignited, and like a bonfire that gets out of control, they have no way of extinguishing it.”
This should be interesting.
“Therefore, 2018 has the potential to be a substantial tipping point in the supply/demand dynamic.”
Here we sit, barely two weeks into the new year, and guess what? Risk assets have already blown through some analysts’ full-year projections, with both equities and HY (for instance) rallying further than some of the less sanguine (yet still optimistic) year-end 2018 targets.
“But that’s not the half of it: Those massive buys were accompanied by a giant amplifier in the form of front-running speculators and arbitragers who hang around the casinos.”
But for those interested in trying to “DO SOMETHING” (as opposed to just kicking back and being “actively” passive)…
“We know QE as the source of all good in financial markets”…
“There is a non-trivial chance that structural changes in our social worlds of politics and markets have made it impossible to identify predictive/ derivative patterns.”