Equity Markets

One Year Later, This Is What Would Prompt Another "Risk-Parity" Blow Up

Last week’s sharp sell-off in JGBs following the BoJ’s decision not to cut rates, renewed investor fears of forced selling by risk parity funds. This was accentuated as it took place roughly one year after last August's notable risk-parity sharp, market-moving deleveraging. So under what conditions could a similar risk-parity blow up take place again? Here is the answer.

US Futures Rebound, European Stocks Higher As Oil Rises

The summer doldrums continue with another listless overnight session, not helpd by Japan markets which are closed for holiday, as Asian stocks fell fractionally, while European stocks rebounded as oil trimmed losses after the the IEA said pent-up demand would absorb record crude output (something they have said every single month). S&P futures have wiped out almost all of yesterday's losses and were up over 0.2% in early trading.

Even Reuters Gets It: "Money-Printing Has Pushed Stocks Out Of Kilter With Economic Reality"

It appears that the world's central-scammers have finally gone too far. In a shockingly Zero-Hedge-ian statement, Reuters is forced to admit that "spooked by the end of a 30-year bond bull run and bouts of money printing which have pushed stock values out of kilter with economic reality," high-profile investors are turning their backs on financial assets and favoring real assets.

US Futures Flat; Bonds Rise, Dollar And Oil Slide Over US Productivity Collapse Fears

Following yesterday's muted action which saw the S&P500 close unchanged, it has been more of the same listless trading overnight, with US equity index futures little changed as the Nikkei fell on the back of a stronger Yen, while government bonds rose and European stocks reversed early gains following the BOE failed bond monetization operation. Crude oil dropped for a second day after Saudi Arabia told OPEC that it pumped a record 10.67 million barrels of oil a day,

Preparing For A World Without Cash

Central bankers throughout the world, from Canada to Ireland, have recently indicated that they might issue digital currency in the future... but, the centralization of banking under this system would also create a Leviathan with the power to monitor and control the personal finances of every citizen in the country.

The Stock Market's Big Lie: "I'll Take The Under"

One of the biggest “lies” in the financial world is that if you just invest your money in the markets over the long-term, you will average 7, 8 or 10% a year. Asset-gatherers don't give enough credence to the long-term effects of the “when” you start your investing cycle. The primary problem is that investors DO NOT have 100-years to invest BEFORE their disbursement cycle begins. Unfortunately, with stock valuations pushing the second highest level in history, forward return expectations (before inflation, taxes, and expenses) are extremely low.

5 Things To Focus On

Yeah, but apart from oil's failure to hold its gains, US earnings confirming their downtrend, extreme low levels of complacency in VIX, US banks decoupling from rates, and Japanese government bond implosions: everything is awesome...

Global Shares Slide As Japan Stimulus Disappoints, RBA Underwhelems, Italy Bank Fears Return

European stocks slid to a two-week low amid mixed earnings, as bank stocks extended yesterday’s decline as fears that Italy is not "fixed" have reemerged, not helped by an adverse market reaction to a disappointing Japanese fiscal stimulus announcement, while the AUD first dropped but then jumped after the RBA's priced in rate cut was announced, seen as underwhelming.

Central Banks Are In A Lose-Lose Situation: Low-Rate-Policy "Has Rendered The System Profoundly Fragile"

"...abandoning the low interest rate policy would likely trigger a severe recession... but, continuing this policy would distort and corrode the economic structure even more, which would jeopardize the business model of pension funds, insurers and banks, and further inflate the real estate and stock market bubbles. The low interest rate policy has rendered the system profoundly fragile, with central banks virtually in a lose-lose situation."