Something unexpected happened on the market’s relentless trek to all time highs: the market died.
At least that is the impression one gets from walking around Wall Street’s formerly busy trading desks (certainly the formerly biggest trading floor in the world, that of UBS, now hauntingly empty) where these days one can hear a pin drop. Take the Credit Suisse Prime Brokerage desk in Manhattan for example: here, as BusinessWeek reports in its 1987 anniversary issue, “the phones hardly seem to ring anymore.” In fact, if one didn’t know better, one could assume that instead of all time highs, the market has just experienced another spectacular crash resulting in a universal trading revulsion.
Credit Suisse’s hedge fund clients don’t call about Donald Trump’s tweetstorms and the stock market or ask what to do when terrorists attack. And there was barely a whiff of panic when North Korea erupted in August. ‘Two rockets flew over the land mass of Japan and nothing happened,’ says Mark Connors, Credit Suisse’s global head of risk advisory.
Connor’s assessment, in not so many words, the market has died: ‘There were no calls. That’s absolutely crazy.
This post was published at Zero Hedge on Oct 16, 2017.