This is a special edition of Macrovoises with hedge fund manager Eric Townsend.

The premier financial podcast targeting professional finance, high net worth individuals, family

offices, and other sophisticated investors.

Now for this special edition of Macrovoises, here's hedge fund manager Eric Townsend.

Macrovoises All Stars episode 71 was recorded on October 14th, 2019.

I'm Eric Townsend.

Julian Brighdon is back with us this week.

Julian, it seems that geopolitical developments have really turned up since we last had you

on the program, particularly the attacks on a gag Saudi Arabia.

How does that impact your overall analysis of the market?

It's interesting you bring that up, Eric, because it was just actually a topic that we discussed.

We're just about to discuss with our Macro insider client base, the one we service with Radoel.

The reason why is because it really side swipes the movements in the market.

If you were particularly in the bond market, we'd had that huge, almost unprecedented duration grab.

Was that sort of convexly kicked in and forced anyone who had any bond exposed to just scramble

for duration over the summer?

Then we got down to some ridiculously overextended markets.

I was looking at just the RS, something stupid and simple, like the RSI of 10-year yields in the US,

got to the lowest level we'd seen in 20 years, which was the depths of the Asian crisis.

We started to get corrections in those, and they were relatively rapid in the same way that they were relatively rapid in yields falling.

The real started to spike. Then of course, we had events in Saudi Arabia, we had events with China trade stuff,

and we had, I guess you can call what was going on in Turkey as well.

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