“We are seeing cracks all over the place,” he said. “Of course one of the biggest was the incident we saw in the UK where the Bank of England had to step into the gilt market.”
“We have this synchronized tightening by all the central banks around the world, including the Bank of Japan and the ECB,” Minerd said. “Global liquidity is receding rapidly.”
The US central bank will be eyeing Friday’s non-farm payrolls data, Minerd said.
“It’s just a matter of a pinprick that could bring about a Fed pause or a pivot,” Minerd said. “75% of the time over the last 25 years, non-farm payrolls have come in lower than expectation for the month of September.”
“Something like that would probably catch investors off-guard and could immediately lead to a rally,” he said.
