“There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.”
Jesse Livermore
Growing macro concerns focused on inflation, rising interest rates leading to a potential economic slowdown, and the ongoing conflict in Ukraine have resulted in a massive selloff in risk assets. Not a complete surprise to any of our readers. And, also not a surprise, the cacophony of gloom and doom (“economic hurricane” says Jamie Dimon) has risen to epic proportion.
As we’ve written in the past, alleged experts who opine publicly on future economic results generally have an ignominious history of failure. Moreover, those errors are magnified as predictions help to form expectations that, when missed, cause negative reactions in the markets.