Difficult huh? That’s an understatement. It’s been a volatile couple of weeks for markets, to put it mildly. I’m finding it hard to say anything positive about how markets are trading at the moment apart from the fact that we haven’t experienced this sort of volatility since the days of the GFC in mid-2008.
And if you thought you knew which direction this was all going – you’d probably be wrong. We have seen some large and divergent moves across markets last week, in many cases partly reflecting some reversal of divergent moves the day before. In the wash-up, and despite wild swings over the week, markets are back at levels a week ago.
It doesn’t mean that the underlying issue is resolved but rather it is often a factor of positioning, liquidity and continued uncertainty.
We have had a jumble of all three over the last week and that’s what makes my job so interesting (and nerve-racking sometimes) as well as creating “opportunities”. I don’t think we’ve seen the end of the volatility yet.