Expect another stockmarket crash
Global equity markets have hit record highs on hopes of a strong economic recovery, particularly in the US. Yet major losses have been inflicted on several financial institutions this year. The most notable episodes were the short-squeeze on GameStop and the blow-up of Archegos Capital Management. At the same time, the VIX index of implied volatility of the S&P 500 has slid to its lowest levels since the Covid-19 crisis broke. This all seems difficult to square.
Most people think that the hits taken by certain banks and investors
