A Crucial Test of the Market Dominance Idea
Things are coming to a head in risk assets
Risk assets have sold off. The SPY is now down 16.4% from its peak. Financial conditions have tightened more broadly. The 30-year fixed rate on prime US mortgages has increased from 2.9% to 5.3% per annum. The markets are continuing to price in Fed’s guidance. The Fed has set itself the goal of tightening financia…
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