In Traders’ Prayers, “Monetary Policy-Makers Have Taken The Place Of God”
Authored by Richard Breslow via Bloomberg,
Yesterday was an unusual day. In addition to all of the stunningly obvious reasons. Of which, I confess, finding the way Treasury yields behaved being the most intriguing. Usually, when markets sell off hard, people call — and after a few pleasantries (or growls) the inevitable questions get asked.
“Isn’t this overdone?” “When will it end?” Et cetera.
And, of course, “Why don’t they do something?”
The “they” shows how much financial markets have come to rely on their central banks to provide. In the prayers of traders, monetary policy makers have taken the place of God.
On Thursday what I heard was notably different.
During the worst of the price action, the calls I fielded included:
“Can I buy now?”
“I’m loving these bargain prices”
Or, my favorite as a global macro guy, “Of the following stocks, which would you start buying first?”
That’s rather remarkable.
Cash is indeed king, but apparently intended to be put to use lest it burn a hole in any pockets.