The Flywheel
Small insights building on each other
Why is the stock market down?
Interest rate increases are helping to drive down stock valuations
3rd Quarter, 2022
Newton’s law of action and reaction will continue to prevail as markets shift
2nd Quarter, 2022
Investors must remain steadfast until the existence of the green shoots is reliably confirmed.
Some Thoughts on Market Volatility
At present we are in the throes of a global interest rate reversal wherein some 60 central banks have used their various tools to either exit negative rates or hike artificially low rates. The combined effects of unwinding years of stimulus and forcing borrowers to confront the real cost of funding is hastening deleveraging in an environment of shrinking liquidity.