Chief Economic Adviser, Allianz. Author of NYT bestsellers "When Markets Collide" and “The Only Game in Town.”
Interesting questions after today's selloff which triggered concern among retail investors(per @Fidelity and @CharlesSchwab indicators)&lacked decisive "buy the dip" reaction: Are #markets more sensitive to economic/corporate fundamentals? Will the faith in #CentralBanks prevail?
With this financial (risk aversion) background adding to the mounting economic concerns, #stocks in #Japan opened down some 4%. Keep an eye also on emerging economies, particularly in #Asia , where economic and financial vulnerabilities to #CoronaVirus spillovers are significant.
A #markets ’ tug-of-war so far this early morning. Hope of a repeat of an historic pattern (see @CNBC chart) led initially to a bounce back in stock futures. This is now coming under some pressure as #traders also keep a worried eye on yields which are now lower on (young) day.
My thoughts on insights from #GameTheory as applicable to the ongoing search for new (and more effective) central bank tools. @bopinion #centralbanks #economy #markets @federalreserve @ecb @CNBC @TheEconomist @economics @markets #BehavioralEconomics @FT
Together with lower #stocks , yields on both 10- and 30-year US government #bonds just traded at record lows. While the overall level of yields is still influenced by negative-yielding bonds in Europe and Japan,the recent leg down is a reflection of poorer global growth prospects
Another ugly market session with the Dow down 2% and 10-year US government bond yields at a record low. The magnitude and nature of the recent sudden market drops will fuel concerns about technical dislocations possibly triggering more selling — this as fundamentals also weaken.
As much as I hate saying this, I strongly suspect that these estimates of the CoronaVirus-induced hit to GDP may well prove too optimistic — across the broad. #ft #economy #markets #china #coronavirus @FT
Another example—from #France — of the ripple economic effects of the #coronavirus . Points to a wider phenomenon that makes the consensus characterization of a “transitory” economic shock—ie, a sharp V due to a quickly containable, temporary and reversible impact—less realistic.
Thanks @lisaabramowicz1 Another indication of elevated asset prices increasingly decoupled from weakening fundamentals and ample/predictable central bank liquidity inadvertently encouraging excessive risk...which raise corporate incentives to over-borrow/over-financial engineer.
Peaceful in #LagunaBeach as police separates small group of outside protestors from bigger counter protest--in no's,ideas,tolerance & impact
This sharp fall in yields on US government #bonds —the 10 year is now #trading at 2.62% in reaction to #Apple ’s signals about weaker global growth—is truly remarkable ... and especially given that the #Fed has been reducing its balance sheet and the tapering its . #QE #china