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Ari Bergmann From Kirsten Bischoff, Opalesque New York:
Excess liquidity in the markets is clearly a worry for many people, as the US Federal Reserve continues to swing the pendulum as far away from the liquidity crisis of 2008 as possible. Recent comments regarding the overload of cash infusions include Marc Faber’s at this week’s Ira Sohn Conference, "If Ben Bernanke were here right now, he would drop $1 trillion into this room" (Source) and an observation from Richard Fisher, President of the Federal Reserve Bank of Dallas who last week said "we’ve gone from too little liquidity to too much."
While the effects of injected liquidity have benefitted many, the focus now is on what will happen when the spigot is turned off this summer. Where are the risks and much like a game of musical chairs, how can managers ensure that they will not be left standing when the music stops?
"We are definitely in a liquidity-induced market right now," Ari Bergmann, Founder and Managing Principal at Penso Advisors said during a recent interview with Opalesque. Penso, which creates bespoke strategies for hedging against systemic macro risk for institutional clients, says that systematic risk is here to stay, and that the firm has recently doubled the size of its trade team as investors no longer have the option of ...................... To view our full article Click here
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