Brent Donnelly is a senior risk-taker and FX market maker, and has been trading foreign exchange sin
Unanchored
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Very interesting and thought provoking piece.
Now most of the changes occurred when the Fed and other Central Banks went ultra-loose monetary policies ( or at least when the majority of market participants recognized it and thought it permanent)
What happens when say “Inflation is Here” and must be dealt with?
What happens when the CBs get out of the money printing business and have to maintain an honest to goodness Cost of Capital in order to arrest Inflation?
I humbly submit that the “snip” is a function of what John Hussman has described as “Deranged Monetary Policy “
A policy that can’t be extended forever
And hopefully won’t
Nailed it.
The Times They Are A Changin’
Great article!
This crypto, meme stock, NFT, tokenized world is this generations Dot Com bubble. Except it’s fueled by infinite leverage and zero regulation. We all know there’s massive fraud in these types of systems. Humans cannot by their nature self-regulate.
These new asset classes will see a crushing pullback over 90%. Who knows what the stock markets will do.
And when will this crash come? Who knows? Are we there yet? Do we have 200% more to go?
Those who trade this with discipline will get out alive and wealthy. Most will lose it all.
Speaking of unanchored, European junk bonds had a negative real yield last week. That’s … ummm … never happened before and should be … impossible?
Another “too big to fail” opportunity… Common knowledge is we will never have another default cycle. Until today and seeing Evergrand make it to the front pages, sure feels like even the Europeans could kick the can a long way down the road.
What does ‘OG’ mean in OG NFTs mentioned in the footnote? Thanks.
Great post. It really highlights how the game is changing radically in ways that are easy to miss.
My grandmother had a portfolio of stocks listed on the stock market. I have a portfolio of stocks listed on the stock market. All of the terminology is the same, but the game is completely different.
Sorry slow reply ! It means Original Gangster… i.e., the most old school and highly-respected.