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Edward Dowd, founding partner at OceanSquare Asset Mgmt and former BlackRock executive, observes that violent and unprecedented movements are taking place beneath the surface of market indexes.
He states that his quantitative colleagues are amazed by the scale and nature of these moves.
Dowd recently pointed to the Japanese yen falling to its lowest level since 1986, raising the possibility of intervention by authorities. Earlier, he noted that semiconductors and tech hardware accounted for a combined 820 basis points of the S&P 500’s year-to-date total return. These observations add context to his latest comments on unusual activity beneath major market indexes.