Wall Street's risk orientation overturns the theory of the ZIRP (zero interest rate policy) period - everyone is bullish

It seemed inevitable to Wall Street conservatives. If bonds start providing decent yields again, the risk orientation that flourished when interest rates were zero will be lost.

　　However, in reality, this is not the case. The two-year US bond yield had been hovering around 5% for most of April, but the expected decline in speculation has not yet been realized.

Edward Park, chief asset management officer at the London asset management company Evelyn Partners, pointed out that “large amounts of money are still circulating in the market, whether due to fiscal stimulus measures or the fact that ultra-low interest rates have continued for a long period of time,” and said “game stops are probably signs of that.”

According to a report released by Morgan Stanley's trading desk on the 16th, rather than excessive pessimism, the main threat is that all investors, starting with hedge funds, are too bullish, and there is a risk that the market will collapse under the weight of a sense of elation. Concentration on the same stocks progresses, investor positioning continues to be at a high level, and if any problems occur, the results come out immediately.

〈I think there are a few things here and there that the conventional sense of theory has been overturned since large-scale monetary easing during COVID-19. I want to calmly sense changes in the market and ride the market waves, not assumptions〉