Trader Asks: “Remember The All Time Highs After Bear’s Subprime Funds Blew Up?”

One of the most enduring legacies of the financial crisis is the death of the credible notion that traders flock in and out of “safe havens.” As Bloomberg’s Richard Breslow notes, investors don’t particularly care to seek safety. Why waste the effort when the central banks will be buying the dip if you don’t.
It’s also true that no one knows what is a haven. It’s become little more than a parlor game to advise what won’t be affected or will benefit from this or that calamity in an utterly interconnected world.
Rushes into safe assets represent no more than the private sector flow equivalent of front-running central banks. They just have a shorter shelf life.
Investors tumbled even further down the rabbit hole of ridiculous sovereign bond yields after the U. K. referendum.

This post was published at Zero Hedge on Jul 8, 2016.