PIMCO Links Fed, China, Commodity Deflation & Market Concerns

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Mark Melin
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Updated on
PIMCO

Noting that scientist Ivan Pavlov trained dogs to salivate in anticipation of receiving a tasty reward, Pavolv’s experiments translate into the current market environment, a recent PIMCO strategy note observed. Investors have become trained to react negatively simply at the anticipation of a Fed rate hike, and the Fed is accomplishing a task that hasn’t been successfully executed in the postwar era, they note. PIMCO: Fed is eliciting typical Pavlovian response, causing markets to shudder at the thought of a rate hike “In 2015, market volatility has been rooted in a phantom rate hike from the Federal Reserve, which throughout the year…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.