‘Stability Breeds Instability’: How The Robots ‘Behaved’ During Wednesday’s Selloff
Forced deleveraging.
Forced deleveraging.
Phew. Will this be enough to allay fears?
Posthumous equine abuse.
Here comes more regulatory scrutiny.
Here comes China.
As ever, the risk is that we get “proof” that fears of an inflation shock are not entirely unfounded.
Can you feel the tension?
“This is the most feared scenario. And, to make things interesting, we are not very far from this regime.”
“…the length of the current bull market in balanced equity/bond portfolios is now the longest on record.”
Boy, we’re really in the heat of things now.Â
What does history tell us?
“This is fine.”
And don’t say Urjit Patel didn’t try to warn you.
More tantrum symptoms, more fragility.
“From there, it’s about October’s large Quantitative Tightening impulse”.
“Yesterday did not feel ‘quant-y’ to me.”
So what about the September Momentum rally and the idea that hedge funds will keep “grabbing” for exposure?
Depending on who you listen to…
A momentum surge and then, a quantitative tightening “triple-whammyâ€.
The fix is in.
Remember, credit creation in China is a key piece of the macro puzzle…
“Another day for U.S. equities funds, another sizable underperformance.”
Douglas Adams time.
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