{"id":27637,"date":"2017-11-05T18:19:29","date_gmt":"2017-11-05T23:19:29","guid":{"rendered":"http:\/\/olduvai.ca\/?p=27637"},"modified":"2017-11-05T18:19:29","modified_gmt":"2017-11-05T23:19:29","slug":"eric-peters-the-next-market-cleanse-will-be-sharp-deep-fast-and-feel-like-the-end-of-the-world","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=27637","title":{"rendered":"Eric Peters: “The Next Market Cleanse Will Be Sharp, Deep, Fast And Feel Like The End Of The World”"},"content":{"rendered":"

Eric Peters: “The Next Market Cleanse Will Be Sharp, Deep, Fast And Feel Like The End Of The World”<\/a><\/h3>\n
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The latest weekend note by Eric Peters, CIO of One River Asset Management, is his latest masterpiece in lyrical, stream of consciousness, financial analysis, and can be broadly divided into to broad parts: his latest take on financial markets analyzing the build up of disequilibrium which eventually culminates with discrete “flushes” that reset the system; how bold investors inevitably give up on financial sense and logic long (or just) before said flush takes place, and what this upcoming Minsky Moment could mean for the future. We have excerpted from this section in the current note, as for the remainder of his weekend observations – which deal with tectonic macro and geopolitical shifts – we will follow up in a subsequent post.<\/p>\n

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Anecdote<\/strong>: \u201cThe most common example is a ball sitting atop a hill,\u201d she said, polished accent, hint of condescension. \u201cLocally stable, but one nudge and it\u2019s all over.\u201d<\/strong><\/p>\n

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She drove terribly fast, discussing Minsky Moments; the idea that persistent stability breeds instability. \u201cNaturally each cycle is different in key respects, and that\u2019s because you\u2019re far better at preventing past problems from recurring than new ones from arising.\u201d<\/strong><\/p>\n

I smiled, amused, insulted. \u201cDespite knowing this all too well, you humans remain inexplicably fixated on the rearview mirror. And this blinds you to all manner of hazards ahead.\u201d<\/strong><\/p>\n

She initiated a few perfect turns of the Tesla, dodging a squirrel or two, tumbling, unhurt. \u201cThe source of instability in this cycle is your dissatisfaction with ultra-low bond yields.\u201d $8trln of sovereign debt carries a negative yield, still our central bankers buy. \u201cYou should logically respond to this historic rise in valuations across asset classes with a reduction in your expectations for future returns.\u201d I nodded. \u201cBut instead you respond with indignation.\u201d<\/p><\/blockquote>\n<\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

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Eric Peters: “The Next Market Cleanse Will Be Sharp, Deep, Fast And Feel Like The End Of The World” The latest weekend note by Eric Peters, CIO of One River Asset Management, is his latest masterpiece in lyrical, stream of consciousness, financial analysis, and can be broadly divided into to broad parts: his latest take […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[12566,13503,4148,16868,16869,4318],"class_list":["post-27637","post","type-post","status-publish","format-standard","hentry","category-economics","tag-end-of-the-world","tag-eric-peters","tag-market-correction","tag-minksy-moment","tag-river-asset-management","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27637"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27637\/revisions"}],"predecessor-version":[{"id":27638,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27637\/revisions\/27638"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}