These fears already have tangible consequences: they pushed down business sentiment more in this month’s Oxford survey than hard data justified. “Our analysis suggests that financial crisis fears account for much of the gloom,” said Jamie Thompson, the poll’s lead economist.
“So we have a second wave coming, we have very wealthy people taking profits [on stocks] and we see a lot of speculation in the market. I think the market is going to start to go down again,” Lamoureux told MarketWatch recently.
Dumping the junk
HYG flows pic.twitter.com/njzX6J9YcH
— Alessio Urban (@AlessioUrban) September 24, 2020
I don't think people realize how significant the latest Powell pivot is here. The Fed is taking their foot off the stimulus accelerator, right when Trump needs them the most. He's then using the "we need more fiscal stimulus" as cover when he knows it's not coming. /1
— Brad Huston (@BradHuston) September 24, 2020
Suppressed $VIX/vols during this move down in markets is due to the false notion that "stocks only go up" creating a lack of fear that leads to a continuous cycle of BTD call buying, only to have those calls puked out as markets move lower while puts continue to be ignored
— Stretching Spreads (@FadingRallies) September 24, 2020
Half of adults who lost their jobs during the pandemic are still unemployed t.co/DUXnA1zaIh
— Win Smart, CFA (@WinfieldSmart) September 24, 2020