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 .

Portugal Últimas Notícias, Portugal Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

My Foodie Weekend: A Culinary Wishlist From Eva Pau Of Asia MarketOnline
Fonte: TheGlossMag - 🏆 9. / 68 Consulte Mais informação »

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
Fonte: IrishTimes - 🏆 3. / 98 Consulte Mais informação »

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.
Fonte: image_magazine - 🏆 17. / 59 Consulte Mais informação »

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

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
Fonte: IrishTimes - 🏆 3. / 98 Consulte Mais informação »

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.
Fonte: image_magazine - 🏆 17. / 59 Consulte Mais informação »