Article: “There is a massive move underway in markets, GMO’s resident contrarian James Montier noted in a white paper titled “Six Impossible Things Before Breakfast.” Like an Alice in Wonderland journey, James Montier goes down rabbit holes of ” financial repression ” of free market thought as he attempts a rare feat in the history of algorithmic analysis: Modeling an assumed free market to its correlation impact on a centrally-influenced market featuring negative interest rates. Modeling the point at which a “repressed” market impacts a free market is a feat rarely accomplished in public with a high degree of difficulty. The author’s resultant “two key assumptions, neither of which (he finds) very palatable,” question the linkage between interest rates and stocks as an investment priced based on assumed risk.” ..

Montier: “If bond markets are smoking weed, then the stock market appears to be hooked on crack.”

LINK HERE to the article

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