Pendulums and Swans

After all of last week’s hullaballoo, how are we left? We know that once again the movement in the price of assets can be breathtaking in its speed and magnitude. We know that it’s driven by risks that were already suspected but which suddenly become more likely. We know that the moment of most panic is the moment for the reversal.

Wasn’t it ever thus? Aren’t markets always prey to these sudden re-pricings? Prior to QE, that was usually true. Various lurches would provide a good opportunity for rational investors to add or unload. The . . .

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