Bond

Geopolitical Tensions Are Designed To Distract The Public From Economic Decline

"...there will come a time, probably sooner rather than later, when the piper will have to be paid and someone will have to take the blame for our fiscal non-recovery...I do not see the timing of heightened geopolitical tensions in 2017 as coincidental. It appears to me that these events are perfectly organized with maximum distraction in mind as we hit the top of perhaps the most massive stock and bond bubbles in modern history."

Credit Investors Are Suddenly Extremely Worried About Central Banks

The latest credit investor survey by Bank of America shows a marked change in the Wall of Worry: "Quantitative Failure" by central banks has emerged as investors’ top concern (23%), up materially from June’s reading (6%). Investors say that a backdrop of the ECB ending QE next year, while inflation remains sub-par, "has the potential to rattle the market’s confidence."

Wall Street Analysts Respond To Mueller's Grand Jury Subpoena

"From a Wall Street standpoint I can’t say over the long term that (a Trump impeachment) would be a bad result for stocks. The uncertainty of going through it all would be a negative, but I’m not sure the market would remain lower for long, assuming all else is equal."

Is Another Lost Decade Ahead?

"This time is 'not different'. The only difference will be what triggers the next valuation reversion when it occurs. If the last two bear markets haven’t taught you this by now, I am not sure what will. Maybe three times really is a 'charm'..."

Bears Throw In The Towel: FANG Shorts Hit All Time Low

The FANG bears have capitulated: short interest for the four companies has sunk to a new record low, and collectively the short bets against FANG stocks accounted for just 2% of their traded shares, an all time low.

Frontrunning: August 3

  • Bank of England, staying on hold, hints again at 2018 rise (Reuters)
  • Angry and inspired: Democrats train new wave of candidates (Reuters)
  • Is Gary Cohn a Good Pick to Head the Fed? (BBG)
  • Russia Warns of Worsening U.S. Ties, Criticizes Trump ‘Weakness’ (BBG)
  • Russians Portray Washington as Mired in Chaos (WSJ)

Tech Stumble Drags Global Markets Lower; All Eyes On The BOE

E-mini futures are fractionally lower this morning (0.08%) after Apple's surge helped the DJIA climb above 22,000 for the first time on Wednesday; Global shares declined for the first time in 4 days pressured by tech stocks: Asian shares fell, while Europe pared opening losses to trade unchanged.