Kris Sidial: Equities weakness in June linked to funding stress

Kris Sidial: Equities weakness in June linked to funding stress
Equities drop in June tied to funding

Kris Sidial observes that the primary factor behind the weakness in equities during the month of June was funding stress. He remarks that much of the market commentary focused on macroeconomic factors, but according to his perspective from the institutional side, the origin of the weakness was clear within market circles.

Sidial has previously commented on market stress during periods of policy change. In 2012, he noted skepticism among veteran traders amid early quantitative easing efforts. He has also highlighted the risks traders face when competing with talented firms in adverse selection scenarios.

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