Rick Rieder, CIO of Blackrock’s global fixed income and head of global allocation, warned the market “feels a bit frothy… last week was a bit eery for me.” While he explains that this is “the most exciting time” to be investing, he says the largest asset manager in the world has pulled back a little amid the ‘buy everything’ mentality (and the waves of fiscal and monetary policy and surges in economic data). The CNBC anchor desperately tried to spin all that as “Goldilocks” to which Rieder responded by asking ‘what happens after goldilocks?’ warning that “The Fed is overdoing it…”
Why did equities rally? Why did Treasuries rally? Why did commodities rally?
In the last 50 days around $700 billion has gone into the system from the Treasury… and add The Fed’s adding its liquidity too.
“There’s too much liquidity… there is literally no value in the markets today.”
Additionally today, the market seemed spooked by Modi’s comments as India’s COVID case and death count rises exponentially at a record pace and lockdowns are imminent.