One Analyst Suggests CTAs Face Existential Crisis After February Quant Quake
“In fact, the opposite happened during February’s correction.”
“In fact, the opposite happened during February’s correction.”
It’s comforting. Sort of. But sort of not.
“When I’ve raised hell you’ll know it.”
So watch bonds. And the dip buyers. Oh, and maybe Bitcoin, too…
There are lingering questions.
This is a particularly touchy subject under normal circumstances and this week is not a week that falls in the “normal circumstances” category, which means this debate is even more contentious than it usually is.
And so, legions of retail investors, hordes of previously cock-sure newly-minted “money managers”, and scores of popular pundits who swore to you they knew what they were talking about, are left to ponder the stark reality of a market structure-driven nightmare scenario.
“Come play with us Danny”…
Remember “knifed at a bus stop”?Â
And there you go. Another way for cryptocurrencies to morph into a systemic risk…
That’s some rough shit right there, and it underscores just how dire the situation had become when the bank embarked on an effort to turn things around after an abysmal Q2 performance.Â
“Come and play with us, Danny”…
Spoiler alert…
“The market can’t go down until the bond market gets hit.”
Let me tell you something you should maybe watch for in 2018.
Here’s a chart that shows you the history of Bitcoin crashes…
So is this the end? Have we seen “peak crypto”?Â
The reason we bring this up on Sunday is actually to draw your attention to another fun “longest since” moment.
“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.”
It’s like Bigfoot. Or Nessie.
“If we let things continue, I feel some serious pathological phenomenons could occur.”
Obviously, nothing could go wrong here.
“The risk is that the market is hugely vulnerable if it hears a distant bark, let alone feels its bite.”
Submitted for your approval…
In yet another truly absurd leg higher…
“It could happen tomorrow given the extreme expense of US equities and the near universal consensus of a continued acceleration in the economic cycle despite the Fed also in the midst of a tightening cycle.”
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.
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