Investors should be long cash and volatility, as a Bank of America Merrill Lynch (BAML) Thundering Word report titled “Recession Reset” provides a glimpse of what it says are “recession risks ” that are currently mis-priced. Since quantitative magic show ended, tricks being played in different markets Cash is king as investors should be prepared for a short, sharp pullback in risk assets if one of a handful of conditions are met, including a spike in volatility or asset market behavior that would cause the U.S. Federal Reserve to pause on its stated aggressive interest rate hike path. The report,…
Recession Risk – The Best Reason To Be Bullish Right Now Is There Are So Few Reasons To Be Bullish: BAML
Mark Melin
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.