Mankind invented a system to cope with the fact that we are so intrinsically lousy at manipulating numbers. It's called the graph.
- Crypto assets stabilized this week, but this provided little relief as U.S. equities got hammered lower, with the S&P 500 losing 4% on Wednesday.
- Nevertheless, implied volatility is almost unchanged compared to last week’s close.
- Credit spreads surged across the board in Europe and the U.S. while the gold price inched higher and the
- Treasury curve flattened as investors fled to safety.
- Expectations that the ECB finally needs to move to taper inflation drove Bund yields higher and supported the EUR this week.
- Quality, Growth and Momentum continued to underperform while a rebound in crude drove energy stocks higher again.
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