What Happens Next?

Tyler Durden's picture

What goes up (via free money and practically infinite leverage and rehypothecation) must come down (when the flow slows)... the dominoes are falling...

 

First Emerging Markets, then US High-yield credit, then US Stocks, and now European stocks...

 

and remember - this "selling" overseas does not mean "buying" domestically as the majority of these hot money flow trades are credit-funded and merely extinguish the debt at the margin...

 

h/t Bloomberg's Chase van der Rhoer