Thirteen years later – another TDC Telecom LBO
As has been the case of late, financial markets were very volatile last week. We would note once again that analysts who predicted, for the umpteenth time, that interest rates would increase in conjunction with stock prices, were again mistaken.
From a strictly theoretical point of view, we understand the paradigm: rates rise as growth, inflation, profits and therefore stocks, forge ahead. And, each day there is proof that excess stress in all asset classes, in addition to volatility, when it appears, sparks a landslide and with it, correlation. Out with the models, which work ...