Amygdalotomy and Extremes Everywhere
The chart below shows the S&P 500 rally since March 23. This has coincided with:
“In my view, by aggressively intervening in the financial markets, at valuation levels that are still nowhere near run-of-the-mill historical norms, the Federal Reserve has performed an amygdalotomy on the investing public. The Fed has encouraged a maladaptive confidence that risk does not exist. This overconfidence of investors is itself a threat to their survival.”
This increases the risks that even if the current round of interventions is successful, the next issue will likely be rising inflation.
https://twitter.com/jsblokland/status/1263169709878530049?utm_source=VP+Lite&utm_campaign=1bf820e5d2-EMAIL_CAMPAIGN_2019_06_25_07_32_COPY_01&utm_medium=email&utm_term=0_e19841ce98-1bf820e5d2-407668989&mc_cid=1bf820e5d2&mc_eid=50999c07dc
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