It's Not All About The US Stock Markets

Tyler Durden's picture

The last few weeks have seen some modest volatility return to the US equity markets (a 5% high-to-low correction) sparking 'markets-in-turmoil' discussions as Fed Taper and Abenomics-Anxiety makes the headlines. But with today's payroll print and a comfort-blanket of stock-and-options quote-stuffing, fed-liquidity-providing momentum, today's rally will allow us all to sleep well over the weekend. However, one look at the following charts should suggest that things have changed... the most successful (momo-driven) trades around the world are coming undone in a hurry as the fear of a slowing of the global liquidity 'flow' rises - and the US equity investor is not immune...


The 'cause' - among others - is the carry-trade (JPY)...


So - we borrow cheap and then have two choices... use that levered cash to chase return or earn a better yield... neither are working now...

Buy What's Working... The damage to equity markets...


Reach For Yield... The damamge to yield-providing markets...


Charts: Bloomberg

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MFLTucson's picture

If you believe the liquidity will slow in the US, you are nuts!  Our entire economy is a fake and built on phony printed money!!

LawsofPhysics's picture

correct, it's about the dollar and all fiat.  Dare I say, it's about trust and the rule of law?'s picture

Does he who shall not be named keep track of up and down arrow clicks?

markettime's picture

Fridays are the new slam gold and silver and buy up the markets day. This way everyone has to look at the slammed price of gold and silver all weekend and the green numbers on stocks. Just makes you feel all warm and fuzzy doesn't it? They are blatently showing us they can manipulate the markets. Who is going to stop them? 

Relentless's picture

Which is why I just went out and added to the stack.... err that is to say my unexpected boating losses

ekm's picture


Good God, Fonz, I am at work. I can't laugh out loud for long.

RockyRacoon's picture

You expected a different conclusion from Fox?  There is nothing the guy could do that they'd approve of or report in a positive light.  Prepared remarks for a 20 minute presentaton are expected in these instances.  I just don't see any big deal.   He met the challenge with some humor at least.  
Lest anyone think I am defending him or anyone else, check your own objectivity.  This all hate all the time thing is getting old.

BTW, I thought Romney did an admirable job in his latest flurry of interviews.  He should have been that relaxed and honest to his own ideals all along.

asteroids's picture

Stunning. You would use a hard earned dollar to buy a junk bond from a country ready to implode?