2023-02-10 Markets

 Things looked more or less stable until they no longer did: Friday’s employment report in the US took many by surprise and forced market participants to revise overly optimistic interest rate paths. This in turn upset all asset classes, yielding the first significantly negative week of 2023.
     In these circumstances (that is, when widely unexpected events occur), interested people inevitably ask me why wasn’t something done about it, almost as if the less predictable the event is the more active one should have been. A good proportion of interlocutors even add that they had an inkling of ‘this’ happening, and hence it should have been easy to forecast it. The confidence level in one’s interpretation of randomness appears to be positively correlated with the level of entropy. Shouldn’t it be the opposite?
[Graph: Axios]