In the markets, it’s starting to look like the 100-year wave is just over the horizon and I’m left with a sensation that the question is not “if” it is coming but “when.”
For the past couple of years something big has changed in the markets, leaving many market participants feeling like up is down and down up. All of a sudden the bond market is starting to behave more like the stock market, at least in the eyes of the investor. It’s like that moment in the movie The Perfect Storm when Mark Wahlberg and George Clooney decide to weather the storm and the conditions for fishing are almost eerily good. Just like the many oh-so-good years in the bond markets—with some funds having returns well over 100%.
Trying to investigate this new fad in the markets, I’ve talked to many hedge fund managers, researchers, bond traders and other market participants. As the conditions seem to get better and better, it is starting to feel like we might be heading into some kind of never-before-seen storm system.
Read More at qz.com . By Sverre Rrvik Nilsen.