Here’s An Hour-Long Interview With Nomura’s Charlie McElligott
“…what is important to note here are a number of things.”
“…what is important to note here are a number of things.”
“… at times of high volatility, the VIX is almost the sole driver of market
liquidity.”
Who knows – maybe ask Sophia.
The phenomenon is not only real, but in fact pervasive. There are, of course, caveats…
“A lack of liquidity is akin to a ship trying to navigate seas without much water – accidents are likely in such an environment.”
“We believe that changing market liquidity has a role in explaining the
dislocation of volatility”…
“Although this negative correlation might not seem like a big deal, the implications from this relationship have been enormous.”
Line up the usual suspects.
Fragility and a lack of policy breathing room.
Is this the end of the “balanced bull”?
“…there is an elevated risk of market reversion into year-end.”
This should come as no surprise.
Death by a thousand cuts.
Selloffs following record highs should probably be viewed as some semblance of cathartic, but that’s not the way people think about things in the post-crisis world.
On Thursday morning, following the systematic unwind that precipitated the worst day for U.S. stocks
Forced deleveraging.
“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.”
Here comes the stock-bond return correlation debate (again).
Back to the “melt-up”.
“The changes, the inflections that are made happen unemotionally and happen with significant leverage behind them.”
And see, that’s where the problem comes in.
Kolanovic’s latest is, as ever, well worth reading. But it should be viewed in context.
Half full, or half empty?
Thiiiiis close to a “buy” signal.
Remember January?
“Milk was a bad choice”.
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