What a day. Anyone wondering what their risk of unwinding is needs to wonder no more. What can we blame for this unwinding?
There’s Russia, Middle East, month end, BES, Treasury yields not behaving, Argentina, profit warnings (e.g. Adidas)… so investors can take their pick from the reasons for this flight to safety. Hedge funds are leading this ‘flight’, harbouring the mindset of, ‘forget the fundamentals, lets make sure our P&L looks good, ay?’
During distressed times, you will also see high volumes of trading, and Autos seems to be suffering the most out of all the sectors.
So are we all poised to buy the dip, I’m not so sure, maybe wait a little bit longer and let the dust settle.