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"We Should All Be Afraid" Of The 'Brutal' Commodity & Credit Volatility

Tyler Durden's picture




 

"The signals across asset classes are diverging incredibly," warns Macro Risk Advisors' Dean Curnutt, "and we should all be afraid." All of that volatility is rolling back into corporate credit and that, inevitably will dramatically impact equity markets (explicitly through higher funding costs weighing on earnings or implicitly through lower buybacks and higher risk premia), "the illiquidity and implied defaults that we are seeing in credit markets are not at all priced into a 2060 S&P."

 

 

With commodities now glued at a 2-standard-deviation limit down trend (just as it was a limit-up trend into the last crash), volatility in this crucial asset class is literally exploding...

 

and, if leveraged loans are any indication, crushing corporate credit markets...

 

Curnutt is right that equities are massively mispriced.

 

Charts: Bloomberg

 

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Wed, 11/18/2015 - 17:51 | 6810891 Boris Alatovkrap
Boris Alatovkrap's picture

Boris afraid, very afraid!

Wed, 11/18/2015 - 18:07 | 6810965 knukles
knukles's picture

Then just consider this: If light travels faster than the speed of sound, how come I can hear the guy in the BMW behind me honk before the light turns green?

Wed, 11/18/2015 - 18:22 | 6811046 negative rates
negative rates's picture

The half of your brain that hears sound resides in the trunk while your eyes are focused forward to the mirror?

Wed, 11/18/2015 - 18:38 | 6811100 Dragon HAwk
Dragon HAwk's picture

I think BMW's come with a timer, that lets you know 3 seconds before a light changes,  it's one of the bells and whistles.

Wed, 11/18/2015 - 19:52 | 6811377 Baa baa
Baa baa's picture

Damn, it IS closer then I thought.

Wed, 11/18/2015 - 17:56 | 6810911 buzzsaw99
buzzsaw99's picture

diverging incredibly...volatility... inevitably... dramatically... (explicitly... implicitly...), "the illiquidity, the illiquidity, er, bitchez...

Wed, 11/18/2015 - 18:20 | 6811033 KnuckleDragger-X
KnuckleDragger-X's picture

A new high tomrrow........

Wed, 11/18/2015 - 17:59 | 6810925 world_debt_slave
world_debt_slave's picture

whose afraid?

Wed, 11/18/2015 - 20:21 | 6811460 Francis Marx
Francis Marx's picture

Right! whos afraid.

 I'm looking for oil to at lease get back up to 43 . If it blows threw that, 45-46 and then then short. See... people dont understand. The HFT dark pools wait for all the shorts to pile in at 40. then then do a huge short squeeze and blow the price up. .

Wed, 11/18/2015 - 18:01 | 6810937 pound the vix
pound the vix's picture

No One cares.  Party on Garth

Wed, 11/18/2015 - 18:18 | 6811022 silverer
silverer's picture

Agreed.  Everything is fine, just follow Goldman's advice.

Wed, 11/18/2015 - 19:07 | 6811194 idontcare
idontcare's picture

It's kindof scary when even Cramer says that Goldman's recommendation of AAPL means that this is a trade a/o/t a long term holding at this point.    Things that make you go hmmmm, hhhhmmmmm?!!

Wed, 11/18/2015 - 18:29 | 6811068 Dr. Engali
Dr. Engali's picture

I'm scared, hold me.

Wed, 11/18/2015 - 18:44 | 6811118 Consuelo
Consuelo's picture

No Safe Space for You...!!!

Wed, 11/18/2015 - 18:51 | 6811138 Give up. Realit...
Give up. Reality is not scientific nor even mathematical.'s picture

The market is not the economy.  If it were HFT would be advertising with doubleclick and Googlesyndication.

But these HFT schmucks don't advertise.  They are the advertisement for the casino.

They'll just keep jiggling the little chart worms up and down, and publishing stories about how even toddlers can make millions in the market.

An Ameritrade employee once told me off the record, 80% of the people who open an Ameritrade account have lost all their money within their first three months.  Of the remaining 20%, just 5% will close their accounts able to pull money out.  The other fifteen percent go down in flames within a year.

The market is not the economy.  The market is organized theft.  The market has always been organized theft.

Wed, 11/18/2015 - 19:11 | 6811206 Linglishboy
Linglishboy's picture

I got my bible and my gun, i'm gonna make it !

Wed, 11/18/2015 - 22:50 | 6811904 hedgiex
hedgiex's picture

Afraid ? Give us a break. Exactly with what mindsets are you playing these games of smoke and mirror ?

Thu, 11/19/2015 - 00:34 | 6812097 Chapulin Colorado
Chapulin Colorado's picture

Popcorn in the microwave.  Chapulin likes fright flicks.  

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