The Risk Trade

The risk trade seemed pretty riskless, especially with the positive seasonality holiday environment apon us. However, today's action should not have been completely unexpected. With an unhealthy economic and financial backdrop negative surprises tend to happen.

In addition, when a trade is crowded reversals could be ugly. Even if this does not become a contagion it could serve as a catalyst to unwind the risk trade. Have a great weekend.

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