
Fanfare and Finding a New Equilibirum
pshan Posted 4 Feb. in #EU #Article Contest #Interest Rates #Jobs #Risk #Margin Call #Power Play #Full Employment #Retail TradersTHE THING IS…
In light of the most recent U.S. jobs report, I think the fact that tame jobs data leaving the central banks pat on interest rates is a moot point. If you are serious about market plays, I don’t think interest rates are the thing at this rate… what should be obvious is that markets are imbalanced, and they could remain that way, violently so. Although equity markets are a glorious pinnacle, it’s the equivalent of staring at a shiny iceberg, in my opinion. In other words, it should be appreciated as a guide for direction, and not be an attraction.
CULMINATING FACTOR
The concession being made by retail crowds for what will be a volatile market, offers little discount for investment returns. The idea that interest rates are low, and therefore the stock market should spur itself on is a dangerous premise. Also, the idea that markets are due for a correction, giving rise to short bets is only marginally profitable. Not a good investment thesis to have…
Any de-leveri…