…and it’s Groundhog Day. Another CB steps up with monetary easing – this time China – and the markets continue their ascent. And ‘Super’ Mario Draghi helped by hinting ECB easing will continue or grow. Shares rejoice.
Aside from the boredom-inducing, low volatility appreciation this is bringing to risk assets, I’m frankly amazed/impressed with how well central bankers seem to have tamed equity markets. The ‘Greenspan put‘ doesn’t even come close.
Perhaps a good reason the CBOE Skew index is remaining elevated. Plenty of folks don’t believe this rally can continue, or at least are willing to lay down some decent put premium to insure against a collapse: