Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By silveristhenew (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

One Trader Is Stunned By The “Staggering” Confusion In The Market

% of readers think this story is Fact. Add your two cents.


Wherever one looks there are disconnects… between bonds and stocks, between risk and uncertainty, between hope and reality. But, as former fund manager Richard Breslow notes, most critically, there is a divergence between data and Fed actions, and this time is different as central banks appear to have shifted into ‘whatever it takes’ to tighten policy from emergency levels mode. 

As Bloomberg’s Richard Breslow writes,

Ranges have been mostly tight in the foreign exchange market encouraging options traders to further reinforce the boundaries. After all, it’s now officially summer and attention is wandering. Trade the range that the market allows and go home as early as possible. Except that’s really bad advice.

One thing that has changed more and more over time is you just can’t predict when a move is going to happen. Summer doldrums, December somnolence are all true until they’re not. And increasingly less so. Day traders may schedule more holidays, but fund managers don’t and can’t reduce positions because it’s nice outside. One thing they know, far better than commentators, is you have to be in it to win it.

What makes this year even more interesting than most is that indecision isn’t being driven by our waiting on some financial crisis or election timeline, but by an extraordinary level of cognitive dissonance. The ability of people to string together utterly inconsistent arguments to describe what’s going on in markets, and the world for that matter, is staggering.

And most importantly, it makes, what are manifesting themselves as quiet markets, actually highly unstable.

The global economy can’t be simultaneously growing well and picking up momentum while limping into recession. Nor can it be buy every dip in carry if we are increasingly risk averse.

And if there’s one question that needs to be addressed, it’s whether investors or monetary policy makers better understand what central bank reaction functions will be to both data and market setbacks. It can’t be ignored that with everyone stressing over the four-week caning of oil prices, the Norges Bank removed its easing bias today.

In fact, look around the globe and tote up the preponderance of those surprising, hawkish or dovish, and you’ll see a pretty compelling picture.

And yet traders don’t buy it for a second. Something will have to give. It’s understandable that there’s been this impetus to flatten yield curves, but what happens if that global recession doesn’t come soon.

People forget that the Fed has two official mandates and a lot of discretionary leeway in addition. Poorly constructed measures of inflation don’t require them by some law to ignore labor market strength or other factors. They don’t have to be governed only by the lowest common denominator. Nor forever ignore the negative externalities of oppressively low global rates and how they further suppress yields and encourage profligate risk-taking.

Breslow’s apparently pro-rate-hike advice is simple…

Don’t spend your time zoning out. Use it to resolve some of these inconsistencies as you forecast and think about where asset prices will go.


Source: http://silveristhenew.com/2017/06/22/one-trader-is-stunned-by-the-staggering-confusion-in-the-market/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Lion’s Mane Mushroom

Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, But it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes:

Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity.

Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins.

Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system.

Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome.

Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function.

Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules. Today Be 100% Satisfied Or Receive A Full Money Back Guarantee Order Yours Today By Following This Link.

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.