Market gyrations reflect fears about the unwinding of QE

Last week, before the global market meltdown, three dozen luminaries of American finance gathered for a summer lunch, where they conducted informal polls about the outlook. The results were pretty dull.

There are two lessons here. The first is that not even ultra-well-paid financiers – be they hedgies, private equity players or bankers – can really forecast the precise moments of market meltdowns. Yes, fundamental strains and cracks can be identified. But judging when these will cause a market earthquake is as hard as real geology; humility is required. And doubly so given that the rise of algorithmic trading is creating dramatically more price volatility and feedback loops.

But the carry trade appears to have exploded after late 2021, when the US moved away from QE and zero rates. Then, when the BoJ also started to tighten earlier this year, the rationale waned. Unsurprisingly, this leaves some investors hunting for other long-ignored QE distortions that could also unwind. This week readers asked me if there will be another shock when the BoJ or Swiss National Bank wind down the equity portfolios they acquired in recent years .

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

My Foodie Weekend: A Culinary Wishlist From Eva Pau Of Asia MarketOnline
Source: TheGlossMag - 🏆 9. / 68 Read more »

Clinical trials group Hvivo announces departure from Irish stock marketCompany says its primary operations, along with the majority of its employees and investor base, are based in the UK
Source: IrishTimes - 🏆 3. / 98 Read more »

This utterly adorable Donegal thatched cottage is on the market for €159,950With an almost impossibly picturesque exterior and set within a serene coastal area, it could almost be lifted straight out of a story book.
Source: image_magazine - 🏆 17. / 59 Read more »

Domino’s Pizza expects profit at lower-end of market viewCost-of-living crisis has slowed demand for products
Source: IrishTimes - 🏆 3. / 98 Read more »

Euronext CEO confirms plan for Irish ‘springboard’ market for small company listingsEuronext Access markets are designed especially for start-ups and small companies that wish to join a stock exchange to finance growth
Source: IrishTimes - 🏆 3. / 98 Read more »

This charming country farmhouse in Cork is on the market for €285,000A beautifully renovated farmhouse with many original features, this three-bedroom property can be found in Foxhall, Rosscarbery, Co. Cork.
Source: image_magazine - 🏆 17. / 59 Read more »