Source: Zero Hedge
“SocGen’s Kit Juckes writes this morning that ‘a week ago, market sentiment was optimistic after the G20 meetings in Buenos Aires. That’s a reminder not to read TOO much into Monday morning markets!’ Picking up on this, another SocGen strategist, Andrew Lapthorne, writes that ‘having bounced back strongly post-Powell, equity markets slumped last week as the mood turned decisively bearish.’….Putting the ongoing carnage in context, stock-wise 52% of MSCI World companies are down by more than 20% from their 52-week high, but only 38% of the market cap….As 2008 taught us, when faced with a liquidity crunch, asset managers will paradoxically hold on to their losers in hopes of getting better prices, while dumping winners. Which is why all those traders who have stoically waited for the past ten years for a renaissance in value stocks may finally enjoy a moment in the spotlight, only to suffer an even bigger hit in the coming months if the global economy is indeed about to sink into a market-crushing recession or worse.”
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