Trader Warns “Market Dysfunction Will Ultimately Have Its Limits”
Global policy uncertainty has never been higher…
And the world is erupting in mass protests: Chile, Ecuador, Lebanon, Barcelona, France, London, Puerto Rico, Hong Kong, Iraq, Guinea, Bolivia, Algeria, Haiti, Egypt, Pakistan, Brazil, Sudan, and today, Azerbaijan.
Both of which are among the reasons why former fund manager and FX trader Richard Breslow warns that markets are, as they have become used to being, too sanguine in the face of chaos.
Nothing bad has happened in the markets so far today. In fact, they look mostly benign and calm. Although it was a little dicey at the beginning. And we’ll have to see how earning reports go. With the bulk of the news on the week’s calendar yet to come, it makes some sense that the net changes in asset prices have settled back down to not very much changed. Yet, looking through my in-box, if there is one word to describe the general mood, it’s “blah.”
Via Bloomberg,
Bond yields stalled where they, perhaps, should have, but that’s no fun. For the most part, global equities haven’t done anything particularly wrong. Yet, they appear at risk of threatening to squander the hard work they put in toward mounting a renewed push to the upside. Currency trading has had its momentum sucked out of it. Commodities look like they simply can’t come to a decision about the prospects for future demand, regardless of the news.
Traders have, time and time again, been remarkably willing to accept kicking the can down the road as a net positive. The status quo, with dovish central banks thrown into the mix, worked just fine for them.
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