Jim Grant of Grant's Interest Rate Observer thinks that back in 2010 we were experiencing a "bull market in fear". Today, we are in a "bear market in fear", meaning investors have lost their caution.
He believes this is shown in the derivatives markets where people aren't buying derivatives to protect themselves against tail risks, but instead are using options to get long.
Grant thinks that today is a good point in time to start getting worried.
He thinks the primary thing to be worried about may be the actions of the Federal Reserve.
He believes this is shown in the derivatives markets where people aren't buying derivatives to protect themselves against tail risks, but instead are using options to get long.
Grant thinks that today is a good point in time to start getting worried.
He thinks the primary thing to be worried about may be the actions of the Federal Reserve.
