Supply Shock Powell's Bullish Signal To Markets | Weekly Roundup
May 4, 2024
This week's podcast discusses Powell's bullish signal to markets post FOMC & QRA, the rise of distrust in institutions, Japan's Minsky moment, the rise of passive investing, Layer 2 solutions like Kinto, market distortions caused by quantitative easing, challenges in finding reliable signals in the market, and the intersection of retail and institutional participation in the market.
AI Snips
Chapters
Transcript
Episode notes
QR Analysis
- Overall debt issuance was higher than expected, which is bad for liquidity.
- However, the composition of debt (bills vs. coupons) remained unchanged, mitigating the impact.
Policymaker Actions
- Policymakers are aware of liquidity issues and are taking steps to address them.
- The QT rollback and Yen intervention signal a focus on supporting liquidity.
Market Advice
- Buy the dip in the current market structure until the election.
- Policymakers will likely continue supporting the markets through then.