Investors cautiously step into market wreckage seeking bargains
After several sessions of violent, whiplash price action in precious metals, cryptocurrencies and high-beta technology stocks, investors are hesitantly stepping back in this morning, driving a mean-reversion process across asset classes. The US dollar—which enjoyed a brief, and increasingly-unusual bout of safe-haven support earlier in the week—is retreating against most of its major peers, while Treasury yields are drifting lower and equity futures are pointing to a partial clawback of yesterday’s losses. The pattern of returns over the last week suggests that the recent market turbulence reflects narrative exhaustion rather than a decisive shift in macro fundamentals. Although thousands of...