FAST FIVE: "2018 Is Starting To Look Historic": This Is The Worst Market Since Nixon's Presidency
Usually the excuse “nothing is working” is used by finance professionals when begging clients not to pull their money, desperate to explain woeful performance and when there are no other explanations left.
This is how Bloomberg puts it: Nothing's working, not large or small-cap stocks in the US, not international or emerging equities, not Treasuries, investment-grade bonds, commodities or real estate.
Most of them are down, and the ones that are up are doing so by percentages in the low single-digits.
Such a uniform underperformance by all assets is unique in history, because when “something falls, something else gains.
The clue: during all previous instances of market turbulence, “there was a bull market somewhere.” Not this time, and here's what despondent traders can blame: Confirming that the shrinking global central bank balance sheet will present a continued overhang to risk assets is the market action observed just this week when optimism over a temporary trade-war truce between the US and China proved short-lived as concerns from Brexit to a flattening yield curve to a global growth slowdown exploded on Tuesday when the S&P 500 posted its fifth drop of more than 3% this year.