Do you remember past financial contagions? Those periods of time that tend to occur just when “things can’t get any better than this.” 1987, 2000, 2008, and 2022 are the U.S. versions of those.
And, with the summer froth having convinced the broad market that nothing can go wrong, my risk-manager brain goes into overdrive. Because when fundamentals leave the building, as they have recently, it allows a lot of bugs to creep in. Such as leverage-induced selloffs. Like that we just saw unfolding in South Korea.
