Just a quick thought: They're not normal times, so don't be surprised if normal rules don't apply..

ref: - General It's tough trying to put together something cogent about these plunging markets for any number of reasons. But not least among them is the fact that so extreme are the moves one might want to write about, what you've got say is out of date before you've had time to do it. So maybe one should stick to generalities, not specifics. Seems sensible… Last night the Dow Jones officially moved into bear market territory, defined as a 20% retracement from the high. Investors were hoping for a boost from President Trump, but in the event were distinctly underwhelmed by what he had to say. Whether or not the travel ban from mainland Europe only served to deepen the sense of foreboding is

"Mama told me there'd be days like this…" -- Some thoughts on the morning after…

ref: - General Why the title? Just too many gnarled old traders being quoted on the wires probably, telling us how they've seen it all before but that this is all new to the latest generation, as though the "newcomers" had just been staring in disbelief at their screens, wide-eyed and helpless as the world took a lurch lower in a manner beyond their experience… and understanding. More then a little condescending, we reckon… not to mention inaccurate. Mind you, you can't help thinking about a new type of highly-geared investor, using cheap debt to follow trading strategies formulated by the longest market expansion in history. Yes, there's some real pain out there and now would probably not b

Well, well, well ...... who'd be a central banker ?

ref :- General After the Federal Reserve's surprise (shock ?) move in slashing rates by 50 basis points yesterday, we had to pen a little addendum to what we were banging on about earlier in the day. Remember we were pontificating about how effective monetary stimulus could be in fighting the Coronavirus-induced slowdown, and the dangers of central bankers, and particularly the Fed, being seen as reliable saviours for investors when things turn nasty ? As it turns out, we didn't have long to wait before we saw new evidence of just how difficult the fallout from this pandemic (is it one yet ?) will be for central bankers, investors and in fact anyone else you care to mention. The Fed hasn't e

Could they? And even if they could, should they?

ref: - "Investors expecting virus rescue by Fed ignore great risks”, Karen Petrou of Federal Financial Analytics, Markets Insight in the Financial Times This particular coronavirus, Covid - 19, may be something new and so is its rate of spread and its threat to the global economy. Over the last 10 days of February investors finally and belatedly woke up to the reality of it all, dumped equities and piled into the safe havens we know so well… particularly US Treasuries where the 10yr yield made a startling new record low of 1.03%. But some things never change it seems, and amongst those we must number investor expectations that central banks will ride to their rescue. Promises from central ba

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