Think Friday was an ugly day? Well, it might not be the last – at least if “risk parity” and “volatility targeting” funds start going haywire. As Bloomberg notes, ultra-easy monetary policy and simultaneous rallies in bonds and stocks over the past few years have caused buckets of money to pour into these kinds of investment funds and strategies. But now we’re starting to see both stocks AND bonds get whacked. That could lead to forced selling and some big trade unwinds in the weeks ahead. Something to keep in mind, at least according to the analysts quoted by Bloomberg.
Forced Selling Could Be Dead Ahead
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Hi Mike
As a trader these are great times. We pick six to eight stocks we know really well and let patience and circumstance guide us. Historical graphs and charts are important and we maintain a watchful eye.
so, I keep asking this question but no one seems to know the answer
BB says there could be a 20B sell off, Q: so who’s buying when it crashes?