The Long and Short of things.

De-risking, Re-risking, scaling down, levering up, etc.

With popular media desperate for narratives to make sense of the current macro-environment, we have heard all kinds of hyphenated appellations that purport to describe aggregate buying and selling in the deepest capital markets in the world.

whatever.

Markets are forward looking discount machines, incentivizing participants to gather information and communicate this information into prices. I must remind myself whenever I watch CNBC or the like that ex-post explanations are near-useless.

Besides, they should be more concerned about armed conflict at this point, with obvious flash points being the Middle East and East Asia. But there is also risk in Europe itself.

Central planning of any type, be it nations, corporations, municipalities, et al., face crisis of confidence. And with so many NGO organizations hopelessly devoted to the task of eroding more sovereign power from individual states (and the individuals that comprise those states), it speaks as another intellectual bubble ready to burst in favor of a new era of subsidiarity and incrementalism.