Blain’s Morning Porridge – May 11th 2020 – Bond Triggers Tumble
“When this baby hits 88 miles per hour, you’re going to see some serious…. “
After last night’s Boris announcement on not reopening the economy, it clearly doesn’t need any further explanation.. (US Readers – complex sarcasm alert.)
Over the course of the lockdown, I’ve been brushing up on Quantum Entanglement Theory and almost accidently I’ve created a time machine. I’m not quite sure how it works – so I reckon that qualifies me a job in Whitehall – but I was able to download The Morning Porridge from May 2021…..
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Blain’s Morning Porridge – May 2021
“Sell in May – oh don’t bother – you are already away…”
It’s just over a year since 20mm Americans lost their jobs in a single month and United Airline’s failed $2 bln bond issue in the first week of May 2020 became the unstable pebble that triggered the most devasting landslide in financial market history.
All around the globe, bond investors woke up to their doubts on just how much government QE programmes, miniscule yields, and the value of their collateral of unproductive obsolete economic assets could be. Equity holders caught the whiff of panic – figuring out rising P/E’s in a crashing global economy meant nothing – even if central banks were promising to intervene. Sovereign debt buyers went on immediate strike, citing concerns on debasement, inflation, and the implausible promises being made.
The result was the most precipitious tumble in history – everyone tried to exit the markets and discovered the truth: “there are many ways to buy, but only one exit marked sell.”
…click on the above link to read the rest of the article…
