Report
Patrick Artus

Expect asset price “aberrations” to multiply

There has recently been a number of asset price “aberrations”, that is sharp price rises followed by sharp price falls. Examples include the share prices of GameStop and AMC and the prices of silver and Bitcoin. These are not just bubbles (as in that in US technology companies) , but drastic fluctuations in asset prices. Unfortunately, such situations should be expected to multiply. Given the extremely rapid money supply growth, a group of investors can easily coordinate to collectively buy a financial asset using the massive liquidity available and drastically drive up its price. These investors then sell this asset and its price collapses.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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