Strategy Video: Stocks, High Yield, Carry Trade Follow the Same Story
• There is plenty of analysis and headlines warning about the risk of equities, commodities, high yield, etc
• While there are distinct issues, developments and risks for each; they all trace back to the same issue
• Speculative appetite is shifting gradually but persistently away from a world of excess towards moderation
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Plenty of analysis and a diaspora of headlines these past weeks have highlights troubles in particular markets. Equities, high yield, commodities, carry trade and volatility products have seen plenty of coverage that boils down to 'at-risk' conditions. While these are very different markets, their underlying motivation is sourced from the same concern: investor sentiment. Liquidity concerns in high-yield fixed income, leverage behind shares and a flight from commodities as a speculative and growth-central asset all trace back to the fundamental evaluation made on any position placed. We look at some of the more ominous clouds and the connections that are made with a reminder of context for the big picture in today's Strategy Video.
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