The big risk? The ECB taper… what follows?
‘It will not always be summer; build barns.’
Today’s sermon is about complacency.
Yesterday, I read in a Fixed Income analyst comment something about the: “robust macro backdrop ahead of the ECB meeting on Sept 7th creating a solid base for risk assets and prompting a steady flow of borrowers to get funding programmes underway..” Sure enough, there is a feeding frenzy developing in the new issue bond market…
Meanwhile, my stock picking chartist Steve Previs warns the gauges he follows, like put/call ratios and VIX, reflect an ‘overly confident’ market. He thinks a top is coming.
Personally, I’ve still got October 12th at 10.30 in the morning tagged as the moment the big equity crash occurs and I get out my buying boots ready for the opportunities that will follow. (Why Oct 12th? Why not..? The date has a nice ring about it as day of manic market mayhem – and the following day is a Friday the 13th… meaning it will panic folk even more!’ Mwwwhahahaha..! )
In the fixed income markets I think we’re glossing over the likely pain to come courtesy of the ECB.
This post was published at Zero Hedge on Aug 31, 2017.