Robots bid stocks back from cliff

Friday 29 April 2022

The Nomura robot whisperers on the persistence of equity refuse to capitulate as macro conditions deteriorate. For me, this is not very different from any bear market. Things get overstretched and snap back then sink again. Rinse and repeat.

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Macro Vol—particularly in FX—on CB policy diverges vs hawkish Fed (dovish BoJ, PBoC), “behind the ball” hawkish laggards (ECB) and hawkish surprises (Riksbank)—yet Equities(particularly bellwether “Growth” Nasdaq, +3.0% off the Tuesday low) continue to SOMEHOW hold the line—what gives?

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.