Bronze sculptures of bulls, the symbol of the Hong Kong stock exchange, at Exchange Square in Central. Bullish news in equity markets and the tech sector is being tempered by sustained high volatility and aggressive hedging by investors. Photo: Warton Li Bronze sculptures of bulls, the symbol of the Hong Kong stock exchange, at Exchange Square in Central. Bullish news in equity markets and the tech sector is being tempered by sustained high volatility and aggressive hedging by investors. Photo: Warton Li
Bronze sculptures of bulls, the symbol of the Hong Kong stock exchange, at Exchange Square in Central. Bullish news in equity markets and the tech sector is being tempered by sustained high volatility and aggressive hedging by investors. Photo: Warton Li
Nicholas Spiro
Opinion

Opinion

Macroscope by Nicholas Spiro

Coronavirus recovery: hedging and market volatility show flaws in bullish narrative

  • While equity markets hail a rebound in economic activity and tech sector resilience, bond markets fear a severe Covid-19 shock driven by a spike in infections
  • If markets were really confident about the strength of the rise in economic activity, investors would not be hedging so aggressively against further turmoil

Bronze sculptures of bulls, the symbol of the Hong Kong stock exchange, at Exchange Square in Central. Bullish news in equity markets and the tech sector is being tempered by sustained high volatility and aggressive hedging by investors. Photo: Warton Li Bronze sculptures of bulls, the symbol of the Hong Kong stock exchange, at Exchange Square in Central. Bullish news in equity markets and the tech sector is being tempered by sustained high volatility and aggressive hedging by investors. Photo: Warton Li
Bronze sculptures of bulls, the symbol of the Hong Kong stock exchange, at Exchange Square in Central. Bullish news in equity markets and the tech sector is being tempered by sustained high volatility and aggressive hedging by investors. Photo: Warton Li
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Nicholas Spiro

Nicholas Spiro

Nicholas Spiro is a partner at Lauressa Advisory, a specialist London-based real estate and macroeconomic advisory firm. He is an expert on advanced and emerging economies and a regular commentator on financial and macro-political developments.