“…re-risking is likely to continue during the summer as volatility stays contained and investors increase equity positions.”
“Liquidity was a big problem in the market meltdown of early February, and hasn’t really recovered since then.”
Marko Kolanovic – a.k.a. “Gandalf”, a.k.a. the “half-man, half-God” – has a new note out and it’s great.
“Narrative of recent selloff: imminent concerns about inflation, rates, trade wars, and a growth downshift are overblown, in our view.”
Gandalf. Need more Gandalf.
The thing about wizards is they are “never late, nor are they early.” Rather, “they arrive precisely when they mean to.”
And what does Kolanovic think the next crisis will look like? Well, “the next crisis’s main feature will be severe liquidity disruptions resulting from market developments since the last crisis,” he says.
“Is this really sensible?!”…
“…at the turn of the tide.”
“Medium term, this is likely to lead to market turmoil, and a rise in volatility and tail risks.”
Right, so one thing people are becoming increasingly concerned about is the extent to which modern market “innovations” could endContinue Reading
Gandalf is back. A couple of weeks after retracting (at least partially) his “buy every dip” reco, JPMorgan’s quant “wizard”Continue Reading
“While we don’t want to minimize the impact of political developments, today’s move was primarily technical and should not be fitted into a political narrative (which in fact was neutral between developments in France and US).”
“When an institution allocates to a momentum strategy in the hope of cushioning itself from stock market downdraughts it is really commissioning someone to sell stocks on its behalf into a falling market.”