Capital Markets

"Dear Fed, Hike Slower... Shrink Faster..."

"Investors not being properly rewarded for the risk they are taking can have longer term repercussions... The normal process of price discovery has been changed, not just by the Fed’s activity in the market using its balance sheet, but also through the constant barrage of headlines designed to move markets."

Spanish Stocks, Bonds, Euro Sink After Catalan Referendum Fiasco; S&P Futures Rise

While S&P futures were modestly higher, rising 0.1% in a quiet session in which China, South Korea, India and Hong Kong were closed for holidays, the Euro, Spanish stocks and bonds were broadly lower as Spain faces its worst constitutional crisis in years following a dramatic, violent crackdown on Sunday's Catalan independence referendum in which 89% of the voters wanted to secede from Spain.

The S&P Has Closed At New Record Highs 37 Times In 2017, The Most In 20 Years

In a testament to the "buy the dip" mentality, or rather only remaining investing strategy in quasi-nationalized capital markets, BofA reports that the S&P 500 has closed at a new record high 37 times so far during 2017, the most in the Q1 to Q3 period since 1997, when the S&P closed at a new record 40 times before the start of Q4.

Buffett, Boomers, & The End Of A Bygone Era

"Baby Boomers are blithely unaware or unconcerned about the gutting of production-based wealth creation and the unsustainability of the financially-based global economy they built... "

Why Economic Data No Longer Matters

"The relevance of data is declining. Policymakers around the world are trying to make crystal clear that they’ll ignore that which doesn’t fit their narrative. Many financial commentators have failed to make the transition and are incorrectly transfixed by each data release."

S&P Downgrades China To A+ From AA- Due To Soaring Debt Growth

"The downgrade reflects our assessment that a prolonged period of strong credit growth has increased China's economic and financial risks. Since 2009, claims by depository institutions on the resident nongovernment sector have increased rapidly. The increases have often been above the rate of income growth."