Based in Monmouth Beach, New Jersey, Daniel Zimmerman is an accomplished financial executive who held fund management and research responsibilities at Goldman, Sachs & Co. for 15 years. During his time at Goldman Sachs, Daniel Zimmerman of Monmouth Beach discussed economic topics in outlets such as Investor’s Business Daily and Bloomberg. He maintains a keen interest in current financial events.
A recent Bloomberg article drew attention to the issues that set markets into a tailspin early in 2020. With volatility spreading across assets, investors found it difficult to determine the exact value of their holdings, with long-established cross-market relationships seeming to evaporate. At the same time as stocks and gold declined, fixed-income exchange-traded funds delinked from the value of underlying asset investments.
With an unexpected rise in 30-year Treasury yields occurring at the same time, untangling the various stresses and their causes have been a complex endeavor. One apparent factor has been lack of liquidity, with extreme demand for US dollars occurring among investors and companies. One longtime market watcher described a liquidity squeeze unmatched by the European debt crisis that has approached the Lehman Brothers crisis of 2008.
The Federal Reserve has responded with robust moves that reflect what has been called the “lesson of 2008.” Instead of hoarding liquidity, the Fed has pumped in as much liquidity as possible, so that it has the greatest possible impact in freeing up lending.
About Daniel Zimmerman 