- J.P. Morgan's top quant Marko Kolanovic predicts a "Great Liquidity Crisis" will hit financial markets, marked by flash crashes in stock prices and social unrest.
- The trillion-dollar shift to passive investments, computerized trading strategies and electronic trading desks will exacerbate sudden, severe stock drops, Kolanovic said.
- Central banks will be forced to make unprecedented moves, including direct purchases of equities or negative income taxes.
- Timing of when this next crisis will occur is uncertain but markets appear to be safe through the first half of 2019, he said.f
Parisian Family Office, CEO. Began Wall Street, 1982. Founded investment firm, CHIPPEWA PARTNERS, Native American Advisors. Active Trader. White Earth Chippewa Tribal member. Was NYSE/FINRA arb. Conservative, raised on Great Plains reservations. Pureblood, clot-shot free. In a world elevated on a dopamine binge, this is his take! Written from MT Ghost Ranch on the Yellowstone River, TN farm Pamelot or San Jose del Cabo, Mexico, CASA TULE'. Always been, will always be, an optimist.