For the second time since Friday, stocks and bonds have sold off together, leaving investors few places to hide. Equity markets and Bonds have been held up by accommodative central bank actions around the world. Now that there are signs of a reversal, with the Fed looking to hike interest rates in the near term, and comments by the European Central Bank that it is pausing in terms of expanding further stimulus, we are likely to see a correction in market prices (in both equities and bonds). Markets have become dominated by central banks globally across all asset classes, and moves by the Fed continue to dominate headlines ahead of the all-important Fed meeting next week. ATM continue to believe the September Fed meeting is very much “live”, and the market may be underestimating the probability of a hike. Markets have emerged from an exceptionally quiet trading period with whipsaw moves, and we are watching developments closely. As we have mentioned as recently as last week,...
Stock Markets, Simplified.