Needless to say, it’s probably prudent to reserve judgement on whether we’re out of the proverbial woods…
All’s well that ends well in Japan after a six-day slide. Or maybe not.
“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.”
“…people think that even Chuck Norris can’t make money buying vol.”
But not like Beldar.
“Is this really sensible?!”…
“However, relative to CTAs there is much less transparency on the total size of assets in risk parity and equity vol control strategies let alone the subset of which is completely rules-based.”
“The sell-offs themselves are not particularly unusual, but the uniformity of the prices moves all on the same day indicates a market driven by price chasing momentum, with investors heading for the door all at the same time.”
So last week, I put you on “contagion alert” amid the chaos in commodities. I’m not entirely sure why, but it doesn’t seem like people generally appreciate the extent to which collapsing metals, plunging crude, and China squeezing leverage out of the system is a really – really – bad combination of factors when it’s bumping…
Despite the Politburo’s best efforts (which now include the imposition of what amount to new capital controls), capital continues to flow out of China. Put simply: all signs point to further RMB depreciation and no one wants to stick around to see how low the yuan will ultimately go before the PBoC finally throws in the towel…
Is this it?
…that was a 23-standard deviation event. I’m not sure what color swan that is – maybe psychedelic?
“I was up until the wee hours, checking my phone to see where VIX futures were trading.”