The Soapbox

hoodeyo

Joined: 09/29/2013 Posts: 6423
Likes: 3387


Liquidity


I don't know sh*t, but the explanations I always read seem to do with "liquidity". In this case, it was that QE leveled off, a lot of debt is being issued that needs financing, and that dries out the market and creates an unfavorable environment. When it was going up, it was the same thing in the other direction, and "risk premium". Among other factors like no stimulus, election, etc I'm sure.

Here's what the CIO I got that from said a week ago, I barely understand it, but fwiw.

"Phase 1 QE out paced stimulus financing by $1TN per month
Phase 2 QE and stimulus financing in balance
In the months to come Fiscal debt issuance will out pace QE by at least $250BN per month for six months. Be short SPX, long bonds future, normal short gold and b/e inflation"

(In response to this post by Quaker)

Posted: 10/26/2020 at 2:00PM



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Current Thread:
  Liquidity -- hoodeyo 10/26/2020 2:00PM
  Lmao -- hoodeyo 10/26/2020 2:10PM
  Where’s @Hoogle.com? lol (link) -- hooshouse 10/26/2020 1:27PM

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