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"We Should All Be Afraid" Of The 'Brutal' Commodity & Credit Volatility
"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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Boris afraid, very afraid!
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?
The half of your brain that hears sound resides in the trunk while your eyes are focused forward to the mirror?
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.
Damn, it IS closer then I thought.
diverging incredibly...volatility... inevitably... dramatically... (explicitly... implicitly...), "the illiquidity, the illiquidity, er, bitchez...
A new high tomrrow........
whose afraid?
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. .
No One cares. Party on Garth
Agreed. Everything is fine, just follow Goldman's advice.
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?!!
I'm scared, hold me.
No Safe Space for You...!!!
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.
I got my bible and my gun, i'm gonna make it !
Afraid ? Give us a break. Exactly with what mindsets are you playing these games of smoke and mirror ?
Popcorn in the microwave. Chapulin likes fright flicks.