I remember when…
“Why should we pay good money to buy put options as a hedge on our portfolio when the Fed will give us a put option for free? I think this is the most far-reaching and transformative effect of the extraordinary central bank policies of the past eight years — we are no longer afraid of things that go bump in the night.”
Let that sink in.
Remember: “it’s all relative”.
What can we say but…
Low vol., “humans” cited.
“He’s just gonna decide – out of the blue! – to rip us off?”
And you know what they say about “what goes up”…
I don’t know about you, but “I think something is wrong here”…
I’m not entirely sure what everyone expected. If 2018 were a person, it would probably be thinking something along the lines of this: “well shit, give me at least 48 hours to get my feet wet before you start accusing me of being a cheap knock-off of my predecessor.”
We’re in the “sweet spot” – it’s “Goldilocks”- it’s “have your synchronized global growth cake and eat your ongoing central bank accommodation too.”
“Outside of a crisis, changes in share prices and earnings highly correlate, and no more so than today.”