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  • Ritesh Jain

    Independent Market Expert, Mumbai
    He is a trend watcher, Global Macro investor and Blogger at worldoutofwhack.com. He has over 20 years of experience in financial markets, bonds, equities, gold, and derivatives. He muses about global macro investment opportunities, economics, business, and financial issues.

Brave new world: Why are corrections so shallow; Latin America is in deep trouble

Argentina Peso has already collapsed. Chilean Peso is all time low and Brazilian real threatening to follow.

ET CONTRIBUTORS|
Updated: Dec 01, 2019, 01.29 PM IST
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The US Federal Reserve B/S normalisation lasted 21 months, and 40 per cent of this reduction has been reversed in just 2 months.
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Not a single week since US Fed introduced “not QE”

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Why are corrections so shallow - FOMO

The money on the sidelines was just so huge.

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Finally we have an all “in”

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The psychology works like clockwork
Retail investor never make money in gold when they trade and not 'invest' in this metal. At $1,550 the news was all gloom and doom and flows into gold funds touched all time high as recession was round the corner. At $1,450 the weekly outflows are the highest since 2016, as investors now believe that the global economy is in a solid shape and they don’t need the “pet rock”.

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The Oracle of Omaha is sitting on a lot of dry powder

He doesn’t find anything cheap to buy.

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Latin America is in deep trouble

Argentina Peso has already collapsed. Chilean Peso is all time low and Brazilian real threatening to follow.

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But real economy is detached from markets
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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