Market Thinking

making sense of the narrative

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Month: June 2020

MMT. None of the above

In a break from talking about markets, or Covid, we thought it worth highlighting this discussion on Modern Monetary Theory, otherwise known as MMT and linking to this article at the Mises Institute, where the author points out (rather pithily Read more…


Dropping back to support.

The US markets last week sold off into the close as they began to worry about the long awaited (and dreaded) second wave of the virus, coming straight back to the long term support line at around 3000 on the Read more…


Paging Michael Lewis

The revelation this week not only that Wirecard has filed for insolvency and CEO Marcus Braun been arrested, but that the ex derivative traders now running the SoftBank Vision fund had constructed something akin to a pump and dump scheme Read more…


They have plans for your savings

The quote attributed Winston Churchill about never letting a good crisis go to waste came as he and others were looking to set up the UN after the Second World War and was popularised more recently by Obama’s chief of Read more…


Bi-Polarity

Traders are trying to see if the dollar will break to the downside. On balance it still looks like it might, but no clear trend yet. Interesting to see that after a spike, both Euro and Sterling have corrected back Read more…


Friday Market Thinking

Overview The markets had a choppy week as the noise trader equity rally ran out of steam and reversed somewhat, before the Fed once again provided support, this time through direct buying of US corporate debt. In some senses this Read more…


What now is the point of Rating Agencies?

Never fight the Fed as they say and yesterday we saw a subtle tweak in their Credit Buying programme that has essentially made the Fed the buyer of last resort of the entire US corporate Bond market. This proved to Read more…


A glass half empty week most likely

As discussed in Friday Market Thinking, we would expect the professional traders to try and bounce the amateurs out of their newly acquired positions with a shift to a glass half empty stance this week. This is Standard Operating Procedure, Read more…


Well that didn’t take long.

Short term Uncertainty Well that didn’t take long. At the start of the week we noted that the noise traders had been making one of their periodic forays  into equity markets and pointed to a number of ‘red flags’ suggesting that Read more…


Hugely interesting, very important…but in some ways perhaps not important at all.

The attached article is one of the most fascinating that we have read in a long time and in many senses one of the most important. Yet in another way it is probably not very important at all. If that Read more…