While it is too soon to hit the panic button, the last few days have been interesting. In part because, in a rush to explain renewed signs of risk-off, commentators have come out with a myriad of excuses. Everything from renewed concerns around the Delta Variant to China’s clampdown or regulatory risk in the case of Tesla. We have sympathy with all of these. Indeed, on Tuesday, we highlighted our fears regarding the threat posed by tapering (“The Fed’s Balance Sheet: The Definition of Insanity” 17th August). Yet, when we look at the various narratives, none seem to fully encapsulate the market moves, which makes us a little curious. Thus, we are falling back on the old dependable: price action. And when we do, it looks as if risk is running out of oomph!
___________
To read more of this exclusive content, please log in below. If you have an account but have not purchased access or signed up for a free trial, click here.
