Handle with care.
Then they went skiing.
End of story.
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.
In that same kind of way where that festering hornets’ nest in your garage isn’t a problem anymore…
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…