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Why The Market's "One-Sided Stability" Is Becoming Increasingly Dangerous: Deutsche Explains

"Tthe existing local stability is likely to be more problematic due to its self-reinforcement – the longer it persists, the higher the risks will become. The one-sided positioning that accumulated since the election now threatens to evolve into a latent condition that mkes markets vulnerable to event shocks. We believe that despite considerable local stability, the market is vulnerable to a risk off trade."

Julian Brigden: "This Is What The 'Armageddon Scenario' For Markets Looks Like"

"My base case is always been that you don't get to the Armageddon scenario with weak data. You actually get to the Armageddon scenario when you actually get strong data. The end game for markets, the most dangerous toxic scenario for markets comes when you've got vastly inflated prices and central banks actually need to hike. "

Is Public Equity A Broken Concept?

At its core, the social compact between public equity markets and society is simple: over time, any investor should have access to the equity of important enterprises created by that society.  If that isn’t happening by virtue of some misalignment of incentives, then those need to be fixed.  The alternative – that the winners stay private but the losers are public – is untenable.  Investors will choose to hoard cash and capital will slowly stop circulating to its best possible use.

Q4 GDP Revised Higher To 2.1% As Consumers Splurge On "Foreign Travel And Recreation Services"

In the third and final estimate of Q4 GDP, the BEA revised the previous estimate of 1.8% notably higher to 2.1%, driven by a sharp upward revision to consumer spending, which rose 3.5% in Q4, after rising 3.0% in Q2, and contributed 2.4% to the bottom GDP line up from 2.05% in the second revision driven largely by spending on net foreign travel and recreation services.

You Know It's A Global Debt Bubble When...

With analysts noting that markets are "taking the Fed's tightening policy in their stride," demand for emerging-markets debt is so strong that one of Asia's poorest nations is mulling a debut dollar-bond sale...

RBC: "The Market Is Looking Increasingly Binary"

"Without movement here, the market is looking increasingly binary, with momentum building again in the ‘disinflation’ camp the longer we stay ‘stuck’ in status quo, ESPECIALLY into the back-half of the year, with the Fed again hiking and the ECB transitioning towards ‘tightening’ as well."

An "Under The Radar" Trump Trade Unwind

"I can’t help but laugh at the sounds of crickets coming from the Trump bulls’ camp. Not that long ago these nutjobs were overwhelming markets with their overly optimistic economic growth assumptions.... Suddenly everyone is dumping equities and greenbacks, while chasing US fixed income higher."

Shiller's CAPE – Is There A Better Measure?

Currently, valuation measures are clearly warning the future market returns are going to be substantially lower than they have been over the past eight years. Therefore, if you are expecting the markets to crank out 10% annualized returns over the next 10 years for you to meet your retirement goals, it is likely that you are going to be very disappointed.

Key Events In The Coming Week

The key economic releases this week are the consumer confidence report on Tuesday, the third estimate of Q4 GDP on Thursday, and the PCE report as well as Personal Income & Spending data on Friday. In addition, there are several scheduled speaking engagements by Fed officials this week.

It's "Judgment Time": Goldman Sees Three Options For Traders

Judgment Time … Options Include: 1) get bearish S&P for a trade; 2) don’t fight the primary trend -- this is a melt-up, and there are good (macro) reasons behind it; 3) simplify the portfolio; wait for better location to re-load length.