David Kotok just broke out the lost-at-sea imagery to describe the current investment environment.
Wiring in from Paris, where he's attending the fifth-annual Risks International conference, the Cumberland Advisors founder said there's never been so much uncertainty in the markets:
"My takeaway, after twenty research papers and speeches from world-renowned experts, remains the same as previously shared in these commentaries: We do not know how this process will end. We have never been in a place where the major central banks of the world have tripled the sizes of their balance sheets and have driven the short-term interest rate near zero. We are in uncharted waters. We do not know where the rocks and shoals lie."
Kotok singles out monetary policy's having practically blended with fiscal policy in amounts measured in the trillions as a principal driver of current volatility.
"We have to set aside the historical texts," he writes. "We must draw back to the roots of our disciplines. The challenge is immense, and we are working at it diligently."
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