“We do not believe this decoupling will be sustainable. Either the rest of the equities must come under pressure or the financial sector must rally.”
Down the rabbit hole…
I guess you can’t blame investors being a bit shell-shocked.
“The major opposing forces in 2018 will be contracting global liquidity vs synchronized global growth. Our view is that the former will be the bigger force, and will drive asset returns in 2018.”
“We start with liquidity as a principle which leads to a sequence of events that escalates into a liquidity crisis, response to which is then an aggressive liquidity injection. At this point, we have to ask the logical question”…
“By boosting returns and repressing volatility, ample liquidity is a gift for investors. It makes the investment journey pleasing, comfortable and lengthy. But it is not a destination.”
Clearly, there is only one question worth asking here…
The top three busiest weeks for investment grade trading volumes in the post-crisis period have all occurred in 2017.”
So what gives? Well, probably not a lot. It could just be everyone is taking a breather. But, in a testament to Nassim Taleb’s “narrative fallacy” argument, we have an overwhelming tendency to ascribe “causes” where there are none.
You know, when it comes to the corporate bond market and liquidity, there’s only so loud you can scream if no one wants to listen. I’ve been in several positions over the years where I got to scream pretty loud (in terms of the size of the audience reached) and it still didn’t feel like…
You’re really good on the piano. I mean, when it comes to the black and white keys, Alicia ain’t got sh*t on you. You’re probably going to be a concert pianist. But then, a venerable Wall Street firm comes along and, because you also happen to have a knack for cash flow analysis (and an…
The liquidity picture for corporate cash bonds is looking increasingly ugly.