Is a margin-call induced stock market selloff imminent? – Investment Watch

by mark000

It seems very likely…

BofA says historic global bond market crash threatens to wipe out world’s busiest trades

“If the bond market doesn’t work, there won’t be another market,” says Ben Emons of Medley Global Advisors.

Global government bond markets are mired in what analysts at BofA Securities call one of the biggest bear markets in history, and that, in turn, threatens how easily investors will be able to exit the world’s busiest trades, if necessary they include positions in the dollar, US technology companies and private equity, said BofA strategists Michael Hartnett, Elyas Galou and Myung-Jee Jung. Bonds are generally considered one of the most liquid asset classes available to investors. If liquidity dries up in that market, it’s bad news for almost every other form of investment, other analysts said. Financial markets have yet to assess the worst-case outcomes for inflation, interest rates and the economy around the world, despite a fall in global stocks along with a sell-off in US and UK bonds United On Friday, the Dow industrials fell nearly 500 points and flirted with a dip in bearish territory, while the S&P 500 index stalled before ending the New York session lower. its minimum closure of June.

GS now predicts another 75bp hike by the Fed in early November…50bp in December…and 25bp in February…bringing the Fed funds rate to 4.75%. .. this is a higher rate outlook than the market is estimating… Fed raises rates hard. a recession and a rapidly weakening housing market… fasten your seat belts…

Snider: The rapidly strengthening dollar continues to wreak havoc on currencies and economies around the world.

EMEs face rapidly tightening external financial conditions, capital outflows, currency depreciations and reserve losses simultaneously

that bad

Dr. Doom predicted the recession of 2008 and says that a “long, ugly recession” is coming this year.

Powell has a tough message for investors: Tighten your seat belts, because recession and unemployment are coming

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