Feb 12, 2018 - Economy

Global markets could have "a much bigger shakeout coming"

Axios

Trader on the floor of the NYSE last week — Photo: Spencer Platt / Getty Images

"The world’s biggest hedge fund ... warned that global markets are entering a new era of volatility as the world adjusts to higher interest rates after a decade of ultra-loose monetary policy," the Financial Times reports on the front page.

Why it matters: After Wall Street's worst week in six years, the FT pointed over the weekend to "The end of an era of tranquility" and the beginning of "The age of instability."

Bob Prince, co-chief investment officer at Bridgewater, said last week’s turbulence is set to continue: "There had been a lot of complacency built up in markets over a long time, so we don't think this shakeout will be over in a matter of days. ... We'll probably have a much bigger shakeout coming."

P.S. "New Tax Law Haunts Companies That Did ‘Inversion’ Deals,'" per Wall Street Journal front-pager:

"Companies that engineered ... inversion deals ... have been able to reduce their tax rates and take certain deductions by shifting their tax homes to other nations. ... [P]rovisions in the new tax code restrict some of those deductions."

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Global markets could have "a much bigger shakeout coming"

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