- Rabobank: “Everyone Rational Wants To Sell, While Everyone Official Has Been Told To Buy”
by Tyler Durden, www.zerohedge.com
The best summary of what happened overnight comes courtesy of Michael Every, head of financial markets research at Rabobank Group in Hong Kong, who was quoted by Bloomberg as follows:
While the government helped boost stocks at least twice last week, according to people familiar with the matter, equities extended declines into the close on Monday. Even if state funds come in to defend the 3,000 level, it may not ultimately work, according to Michael Every, head of financial markets research at Rabobank Group in Hong Kong.
“Everyone rational wants to sell, while everyone official has been told to buy,”said Every. “By throwing good money after bad, it just delays the inevitable.”
Every was referring to China; he could have been talking about every central bank anywhere in the world. And then, a close runner up, is Deutsche Bank’s Jim Reid who in his overnight note, explains just why “everyone official has been told to buy”
It doesn’t paint a particularly joyous outlook for global investors and supports our view that financial markets are broken but have been propped up by immense artificial central bank activity.