The Market Ear on equity internals.
A zero-sum doughnut
“Getting a doughnut” in bonus is what all junior investment bankers fear. Somewhat common in 2002 and 2003 and very common in 2008. Probably very rare in today’s evergreen bull. Separate from bonuses, it was striking to us this Saturday morning when we looked at our favorite indicators how many were in doughnut territory – hoovering around zero. We wrote about the “lagom” market earlier this week and we guess this is some sort of continuation of that theme. What does it mean for markets? A big boring with no conviction and frustrating range-bound is our best interpretation.
