Markets Continue To Bewilder

Sigh. Just when you thought it was unsafe to get back in the water, it turns out that things are just swell, after all. Or so it feels after yesterday’s little afternoon squeeze in equities. Italian GDP shrinks 2.4% (non-annualized) in Q1? No problem! German GDP collapses by 3.8% (non-annualized) in the same period? Who cares! It’s all about the second derivative, baby!

While there are no doubt macro punters who have embraced the dark side and done well out of this, in aggregate it appears that Macro Man has plenty of company in his bewilderment. If anything, the negative correlation between the HFR macro hedge fund index and the SPX has intensified recently.

Macro Man is under strict orders to minimize his movement as much as possible, so he’s missed out on the usual circuit of investor roundtables and after-work beverages where macro punters convene to exchange views and, on occasion, commiserations. On an exclusive basis, he is able to bring you a photo (thanks to reader Tiago) of one such gathering last week…

Tough times indeed…

Subscribe by RSS Subscribe by Email