Archegos Capital Management Gets Margin Calls, Defaults
I sense an opportunity of some kind here as a hedge fund blows up and exposed banks get hammered. Now, if I can only figure out what that opportunity is.
It’ll take some time to settle in, but it feels like buying the Pigs * would be too easy, and that would be dependent upon a still steepening yield curve with rising long-term yields.
Could it be the first sign of coming liquidations across asset markets and a failure of the ongoing inflationary operation? That would eventually be gold-positive.
Or could it instigate new and more strenuous inflate-or-die behavior from the Fed and government?
Like I said, it’s going to take some figuring out and it’s probably best to let the situation breathe a little. But something’s in motion. The article refers to “a pothole in the road” but they are not going to come out with a “3 Alarm Fire!” call. They never do at first.
* Since some don’t always know the jargon and lingo, Pigs = Banks.
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