On February 16th, I was on Maria Bartiromo’s show on Fox Business and spoke with PNC Wealth Management Chief Investment Strategist Bill Stone on the state of the markets.
We are in relatively unchartered territory with a roughly $9.5 trillion USD carry trade being unwound and enormous over-investment in commodity/oil production, driven in no small part by expansionary monetary policies in the U.S., Europe and Japan.
Crashing oil prices are pushing the majority of sovereign wealth funds into being sellers of assets in order to make up for budget shortfalls.
Suppressed yields have pushed pension funds and insurance companies into excessive risk-taking and forced selling in order to meet distribution demands.
Individual investors are reasonably nervous about stocks…who is left to buy?