Hints and tips:
...Chris Watling, chief executive at research company Longview Economics, sees the breakdown as a consequence of financialisation....
...But they can still inject liquidity into markets by buying assets through so-called quantitative easing....
...major financial asset class until 2019’s $458bn inflows into bond funds.”...
...Longview Economics through the chart below notes “a sharp tightening of credit conditions in the past two months”, and adds: “This is a classic mechanism for transmitting the initial pandemic shock into...
..., mutual funds and exchange traded funds....
...Using exchange traded funds, this is how you could have done by shorting emerging markets (through the EEM ETF) and putting the proceeds into the S&P 500 (through SPY) at the bottom of the US market in March...
...But Longview makes a beautiful defence of the relevance of technical analysis....
...Chris Watling at Longview Economics reckons it will be a few more weeks before we get the next big sell-off and a new bottom....
...Years of aggressive monetary policy and quantitative easing has only encouraged more debt, with US companies playing a starring role....
...“This could be the final flurry higher in equity markets,” says Harry Colvin, a senior economist at Longview Economics....
...The point of the exercise is to reduce costs compared to a normal active quantitative fund....
...The peak came in 2011 as the Federal Reserve resorted to a third dose of quantitative easing bond purchases, and inflation remained absent....
...Another reason to believe the bull market could eventually become a bubble lies in the record amounts of cash resting in money market funds, even though these funds pay negligible interest....
...But we are a little cautious to say that we’ve now entered a new secular bull market in equities,” says Harry Colvin of London-based consultancy Longview Economics....
...“The market is aggressively priced for risk assets, and the ducks are being lined up for a ‘risk off’ trade this summer,” says Chris Watling, director at Longview Economics....
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