Weekend Reading: Stuck In The Middle - Again

Just as was witnessed following “The Great Depression,” the bursting of the next asset bubble will likely once again drive participants away from the market for an entire generation, or longer. The problem for individual investors is the “trap” that is currently being laid between the appearance of strong market dynamics against the backdrop of weak economic and market fundamentals. Ignoring the last two to chase the former has historically not worked out well.

White House Says Obama Had No 'Advance Warning' Of FBI's Clinton Probe

"We did not have advance warning," White House spokesman Eric Schultz told reporters traveling with President Barack Obama to a campaign event for Clinton in Orlando, Florida. Schultz said news of the Federal Bureau of Investigation probe has not affected Obama's support for Clinton.

An Angry John Podesta Issues A Statement On "Reopening" Of FBI Probe

"FBI Director Comey should immediately provide the American public more information than is contained in the letter he sent to eight Republican committee chairmen.... It is extraordinary that we would see something like this just 11 days out from a presidential election."

VIX Derivatives At "Scariest" Level Since August 2015 Crash

While VIX remains subdued at bull-market-narrative-confirming levels, there are extreme concerns being exhibited in VIX options. There are currrently almost 7 times more 'call' options (bets on a higher VIX) than 'put' options oustanding on the 'Fear' index - the highest since August 2015, just days before China devalued and the US equity market crashed.

Hillary Refuses To Comment On FBI News As She Deplanes In Iowa

With reporters desperate for a soundbite from Hillary, she refused to add fuel to a fire which at this point she has no control over, and as BBC's Kim Ghattas who covers the Clinton campaign just tweeted, she deplaned her plane in Cedar Rapids, Iowa without a comment.

"World's Most Bearish Hedge Fund" Shuts Emerging Markets Unit After 17% Loss

We had previously dubbed Horseman Capital the world's most bearish hedge fund for one reason: as recently as a few months ago the firm's Global Fund had taken its net equity short position to an unprecedented -100%. Horseman is now in the news once again as it is liquidating an emerging markets focused hedge fund following losses totaling 17% this year and difficulties raising capital, according to a letter sent to investors.