I actually prefer what I have long referred to as ‘quiet’ markets. Markets in which buyers and sellers have settled beliefs regarding the current ‘environment’ if you will. Markets in which you can operate for months on end without worry that the powers-that-be will rattle the cages.
Today, the market is ‘quiet’. But not because of settled beliefs regarding the economic environment.
The markets have narrowed into grim silence due to a looming geo-political event. Namely, Thursday’s referendum on Britain leaving the European Union. This type of ‘quiet’ … actually aggrivates me. This continual ‘start-stop-start-stop-start-stop’ interventionist slop we have had to endure as of late. At least sellers of premium are having some fun.
I’m not really making any moves at this time. As neither is anyone else it seems. I’ve already lightened equity exposure on short-term processes. On longer term processes, I’m still hedged. Who knows … I lighten up a bit more. It all depends on what comes of ‘the silence’ …