EZ Financial Stability Review

A good read especially the considered risks to EZ recovery. Mainly external risks but reading between the lines the larger issue I see is the higher correlation of asset classes and the lack of liquidity. These days everyone including market makers (and their unwillingness to provide liquidity in a meaningful fashion) just don't react well to shocks exacerbating liquidity spirals and other disorderly market issues. From an investment point of view when you are a retail trader, you need to be extremely nimble in these markets and strictly adhere to trade plans. In my view profit targets should not be too aggressive as downside risks can be significant if caught on the wrong side of a market shock and liquidity disappears. Time in the market is now a heightened consideration.

How to counteract - keep an eye on fundamental catalysts and track the news a little more closely.

Financial Stability Review

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