Three Reasons Why Everything Has Been Selling Off At Once

After a relentless ascent the previous 4 months, in an almost supernatural straight line, since mid-October markets have struggled across multiple asset classes. That’s most obvious for risk assets, where Bitcoin is down -24% from its peak and the S&P 500 has had its longest run without a new record (13 sessions) since the Liberation Day turmoil. But perceived safe havens have struggled too, with gold down by -6% from its mid-October peak, whilst the 10yr US Treasury yield is up +18bps since October 22, when it closed at just 3.95%.

So what’s going on, and why has everything been selling off at once? Deutsche Bank strategist Henry Allen has some ideas.