Last week, Bloomberg’s Richard Breslow debated whether it’s the size or speed of moves that more unsettle markets. It seemed particularly pertinent as investors were struggling to make sense of the dramatic steepening of sovereign yield curves across the globe.
The answer is, it’s always the speed. And when it involves a reversal of direction, the fear factor is multiplied.
Central banks have done their utmost to make the trend your friend. No matter how distasteful or unwarranted the price levels.
This post was published at Zero Hedge on Sep 20, 2016.