Yorkville Asset Management

August introduced some more significant volatility to markets that hadn’t been seen recently, with asset prices whipsawing from steep drops at the beginning of August to modest gains by the end of the month. Early volatility was driven by a weak US jobs report increasing the likelihood of larger rate cuts and an unwinding of the Yen carry trade, which involved large market participants selling to cover short-term losses. The Bank of Japan stepped in quickly to reassure markets that they would not raise rates during market volatility, reversing some of the losses from the prior days. As markets normalized, we saw a slow recovery in major market indices for the remainder of August. Over the latter part of the month, additional economic data came in more positive and provided further relief to market participants. CLICK HERE