Trumpnado Sparks Emerging Market Massacre As Dollar Soars, Dow Hits Record Highs

Tyler Durden's picture

US Stock markets message to the world...

 

The post-election shenanigans continue with only US equities positive post-Trump... EM Bonds, EM FX, DM Bonds, US TSYs, and Non-US Stocks are all lower...

The Peso remains near record lows and gold and bonds at post-Trump lows...

 

Post-Trump, bonds and bullion are worst...

 

But not all US equities are exuberant...

 

With Nasdaq the big laggard today... S&P 500 closed perfectly unchanged?!

Tech stocks continued to weaken with FANG stocks suffering their worst month since March 2014 dropping to 3-month lows (down 4 weeks in a row, down 13 of last 15 days for a 12% plunge)

 

RBC's Charlie McElligott reminds readers that,  

In Q3, the Tech sector became THE ‘hiding place’ place of respite in the post Brexit-period, with 13Fs showing us that the sector was 14.9% of HF allocations / 13.4% of MF holdings / 14.9% of pension fund notional holdings.  S&P Tech sector returned 12.4% in Q3, while the 4-stock liquid proxy “FANG” was +12.7% on the quarter.  Why?  Because it is simply impossible to ‘slap on’ a bunch of cyclical exposure, even in US—Energy, Industrials and Materials as sectors simply don’t provide enough liquidity.  Add in the OPEC headline noise component as a massively important factor in driving enormous cyclical volatility on a daily basis, and most generalists simply couldn’t “go there” with regards to getting appropriately weighted in these cyclical spaces…and even if you were one of those very tactical funds, you were there to hit singles and doubles, with many having chosen to cut exposure over the past few weeks into the US election risk and now very real doubts on any sticky OPEC production cut deal ever getting done.

 

 

Fast forwarding to this past week: unfortuantely for so many funds, in light of the aforementioned shift post-election into the “Trumpflation” trade, the tech sector has become the “source of funds” (crowded longs in AMZN, GOOG, FB, MSFT all down last week, as the broad sector was a 99th %ile ‘long’ since ‘10) .  Ouch.

"Most Shorted" Stocks continue to get their faces ripped off - now up a stunning 14% in 7 straight days of squeeze - the biggest squeeze since the bounce off the March 2009 lows!

 

Bank stocks are exploding higher... so why aren't bank credit markets excited at all?

Bond-Stock Correlation tumbled back to its 'norm' below 0...

 

But the bond bloodbath continues as 2Y rates topped 1.00%, 30Y topped 3.00%, 30Y Mortgage topped 4.00%

 

And bond 'risk' is dramatically higher than equity 'risk'...

 

Emerging Market bonds continued to slide...

 

The Dollar Index tagged 100.00 for the first time since early December

 

Emerging Market FX continues to collapse (against the USD), completely decoupled from the Dow (and in the red for the year)

 

Offshore Yuan plunged to a record low...

 

WTI Crude dropped to a $42 handle intraday ($42.20)

 

Copper closed higher (despite Friday's key reversal day), but looks very head-and-shoulders toppy...

 

Gold and Silver are down post-Trump but gold has notably outperformed silver - sending Gold/Silver to post-Brexit highs...

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Kaiser Sousa's picture

lets not even talk about any of these fake ass fucking markets cause by now u should all recognize there r no fucking markets...

With that out of the way...Time for another episode of "Stupid Ass Things Dumb Ass People Say About Gold & Silver"...

”Gold does not accrue interest…”, and sitting on a stack of physical is still a risk against the other things you could have been doing with that capital.”    

Now, how idiotic is that??? This is 1 of the many red herrings trotted out by the ill informed to stupidly attempt to present Gold & Silver as inferior assets compared to others including all “paper” claims on or derivative proxies of wealth. Firstly, name any current or past fiat currency passed off to the uniformed and gullible as Money by the international bankers that has ever “accrued interest”. Do any of the following debt based paper currency’s “accrue interest”???                                                                                                           

India Rupee (of course not…) 
Japanese Yen (of course not...)  British Pound (of course not...), US Dollar (hell no...)

Secondly, the sovereign bonds of those nations, along with another 14 trillion in sovereign’s currently with nominal negative interest rates (ever heard of NIRP???), after adjusted for real inflation are yielding real negative interest rates of return. However, lets get back to Money… Gold & Silver are Money. They cannot be manufactured & counterfeited into existence and then debased to the point of worthlessness like EVERY fiat currency that’s existed since the creation of paper currency.

As Money, neither need pay any fucking interest. All Gold & Silver need to do is what real Money throughout history has always done – be a reliable store of VALUE & a reliable preserver of PURCHASING POWER over time.

Lastly, exactly what are the so-called “risks” associated with “sitting on a physical stack” held in your possession & guard outside of the current monetary/financial system that is crumbling before your very eyes??? (NONE) And why is interest on any investment offered by one party to counter-party’s not as a gratuity but as an enticement to part with their so-called capital???

Precisely because the counter-party is assuming the 100% inherent risk of not only NOT receiving interest on top of his so-capital, but more importantly of NOT receiving ANY of his so-called capital back at all as is increasingly the case in this most recent global financial and monetary meltdown brought to you courtesy of the Moneychangers. (Just think Bail-Ins, MF Global, or Redemption Gates for reference.)

until 2morrows episode...

DEATH TO THE FUCKING MONEYCHANGERS...

sneak preview - “The value of the coins has not risen, even a tiny bit. This is because gold does not accrue interest.” 

Aaronson.Jones.Rutherford's picture

Yes, but the fiat game can remain as-is longer than you can stay solvent & then you will exchange you stack for whatever they tell you to exchange it for, just to feed your family. Yes it MAY, & probably eventually will, hold more buying power in the future but Rome didn't fall in a day. Will you really be the one sitting there enjoying your shiny stack while your family starves.... I doubt it. The system ain't easy to beat so if you can't beat em, join em I say, put that asset to better use.

Kaiser Sousa's picture

the system has already been beaten...

that why the fucking debt coupon dollar doesnt buy u shit anymore...but u go ahead and keep believing in the omnipotence of the MoneyChangers and their usury system, and in your own powerlessness like a good little slave...

that aint for me & mine though so keep ur predictions and analysis to urself...in parting here's a gift to u...squander it though u will...

"The greed-diseased and power-obsessed Deep State oligarchs hate you for your freedom and love you for your money, and they are accelerating their plans to strip you of both. There are two things standing in their way: cash, and precious metals. The oligarchs are doing everything in their power to falsely discredit both of them in the eyes of the people. Cash and precious metals are physical manifestations of financial and human liberty. Liberty, which is indivisible, is the absolute last thing the oligarchs have in mind for us, as there is no profit in it for them. The oligarchs realize that the people are fast waking up to what is being done to them. While the Oligarchy remains an unimaginably dangerous enemy, it was wounded in the United States presidential election, is acting more erratically and illogically, and is starting to make serious mistakes. How we, the people, push forward from here will determine whether we remain free, or become slaves to the greatest Force of Evil ever known to mankind, the Deep State oligarchs.

Even though precious metals prices are being deliberately crushed at this time, for the reasons outlined above, we view them as the best, and in certain cases, only defense against Deep State exploitation and expropriation. Gold and silver are financial Freedom Fighters, uniquely capable of protecting people from oppression. Throughout history, as people have fled persecution and sought liberty, gold has been their salvation. For millions over millennia, freedom has only been payable in gold. Precious metals provide the best escape from the Deep State’s coming financial command and control matrix, and are the only assets that cannot be canceled, demonetized or extinguished by government decree and whim. Even assets traditionally viewed as being safe, such as productive farm land, can be taxed into oblivion by a government gone rogue. It has happened in the past, and will certainly happen in the future. One cannot hide farm land, or stitch it into one’s coat."

http://investmentresearchdynamics.com/guest-post-human-derivatives-and-g...

ps: congrats...ur gonna b featured in an upcoming episode of "Stupid Ass Things Dumb Ass People Say About Gold & Silver"...

BabaLooey's picture

The casino's on full retard.

Period.

The elites are pissed, and so they've fucked things up even more - in order for the upcoming crash to be even more pronounced.

It's no longer investing.

Those days are long fucking gone.

It's a PURE speculation "market" - devoid of all logic, reason, valuation or sanity.

Brought to you by the asshats that manipulated a once "fair and orderly market"....

INTO A PILE OF DOG SHIT.

Keltner Channel Surf's picture

Ever notice how the prose in the middle of Kaiser’s initial rant seems, stylistically, a cut above his open and close?  Then, when he condescends to respond, it’s usually in a gruff manner, with texting abbrev’s, but with lots of cut-n-paste material, nothing fancy that’s original.

Conspiracists (not me, of course, I’m wholly rational) might think of two possibilities:

a)  Kaiser is a cultish, over-sensitive dumbass:   he actually believes ALL the crap he types but, knowing he lacks the ability for complex argument, has someone else write the more nuanced parts, or plagiarizes them with minor changes, so they can’t be Googled.   This would explain why there is often a ‘time delay’ in his replies, with all immediate responses cut-n-paste, while anything nuanced takes a day or two to appear.  Also would explain why he’s claimed, for several years, that the Fed is attempting to suppress the paper price of the ‘only form of real money’ to prop up their debt coupon dollar scam, when in fact, given real interest rates, negatively correlated, are the main driver of nominal gold prices, the Fed has done more, through their silly ZIRP policy, to prop up gold and suppress the dollar than any other factor since the financial crisis.

b) Kaiser is a shill for the gold industry:  the gruff simpleton persona was designed, quite disingenuously, to appeal to the ZH stereotype.  He’s quite able to write in complex, nuanced fashion when necessary, but is careful to use the angry, common man open and close, to keep the ‘brand’ tight and appealing.  This would explain why he avoids immediate replies beyond gruff rebukes or pasted material, to avoid tipping off readers, and also why he is particularly chummy today, with multiple replies:  the big recent selloff, along with the potential for a sustained spike in real rates, with it's -0.82 correlation with the paper gold price, makes “keeping the faith" crucial for potential customers.  Wonder if all the votes are real, or come in through shell accounts.  Hmm.

Overall, quite tiresome for us but, apparently, not yet for him …

liquid150's picture

Oh, I think he actually believes the crap he writes. There are an army of fools just like him. That's why speculators make money...

Every single one of the ZH'rs that bought gold before the election, I just want to thank you for your contribution to my portfolio.

Keltner Channel Surf's picture

Liquid Monopoly Man:  you've become quite a favorite.  In fact, I'm ashamed to admit a bit of a man crush -- I think it's the stylish hat ...

liquid150's picture

Now that you mention it, I do get a lot of compliments about my hat. Thanks!

Escrava Isaura's picture

liquid150,

Kaiser Sousa failed to grasp that, if gold was money, South Africa would be the richest country in the world. The best money you can have is whatever the “current” Empire is issuing. Also, gold is unworkable as a currency

Now, I didn’t logged in to make this point; I logged in because you said “basic economic concepts like opportunity cost” which is nonsense and the reader should know that.  

The reason the “stock” market went higher is very simple: Central Bank Intervention.

As long as the Central Bank, make that any Central Bank around the world, window guidance tells its agents to buy whatever that Central Bank wants to inflated, it will go higher.

Then, once the Central Bank cuts the guidance, for whatever goals/reason that they are after, It will come crashing down.

Substantial inflation (bubble) is always and everywhere a monetary phenomenon.

 

liquid150's picture

What is nonsense? Opportunity cost? Opportunity cost is not nonsense. It is inherent in the fact that human beings choose. I am puzzled by your statement.

I did not comment about what made the market go higher. Well, at least not on this thread, I didn't.

Obviously, what makes markets go higher and lower is psychology. Confidence, greed, fear, and terror: these are what make markets move.

The fact that human beings are remarkably predictable doesn't need a Central Bank, although having a Central Bank tends to make the numbers we use to reflect emotions larger than they would be otherwise.

I am not anti-gold. I think gold would make a fantastic currency. I am just realistic, at least I like to think I am. That, and I don't wear tin foil hats. There is no conspiracy, there is only complete and utter incompetence.

AlexCharting's picture

Yeah, KS is certainly no Shakespeare, that’s for sure. The most important question remains… who the hell are those cretins giving him all those upvotes? It pisses me of, as a fascist meritocratist, to see more articulate posts only receive a fraction of that attention. The length of his post-market posts are also all about hijacking the page. 

Keltner Channel Surf's picture

First, let me admire you for being exactly half my age (didn’t discover ZH until late in life) and being similar in having a background that includes studies/work in both finance and social science, something we have in common.

Five years ago ZH was far different, the boards more widely used, more traders and finance types.  It seems they made a strategic decision, from a revenue standpoint, to go for more non-finance folks by altering the content (more political and ‘conspiracy’ articles) which, along with the tough, algo-driven markets making traders more scarce, has morphed the membership quite a bit.  Absolutely nothing wrong with that, and the presence of more Trump-ists allowed the site, both through content and board posts, to be 1000X more accurate on the election, among other things.
 
The Kaiser phenomenon, however, began not too long ago with a shorter, bold all-caps rant that, after receiving many votes, morphed into the page-long inanity that, on a ‘market-wrap’ page, has likely forced even more financial professionals to drop off the boards.  Quite a shame, as I’m convinced the interplay of ALL backgrounds is beneficial to ALL concerned, but he’s made the interaction style more polemic/ranting vs. discussion-oriented.  Lately, folks like you are challenging his dominance of the page through his IDEAS, which some, like me, believe are faulty.  For traders like me this is a breath of fresh air.  Hopefully, he’ll quiet down and try to learn more, unless b) above is more true.

Welcome aboard, and don’t let any downvotes scare you off, just meaningless black pixels -- ideas are more important.

liquid150's picture

I think Kaiser just copy/pastes other articles from a different website most of the time, doesn't he? 

The above, for example, is pretty much exactly copied and linked. Ironically to his own comment on the blog post.

I'll also use this post point out that the above post by Kaiser is factually incorrect. Gold was only rarely used in colonial America. Spanish silver dominated most exchange. Gold was used for large transactions but as I said, rarely, since it was scarce. They also used Indian wampum, and tobacco.

Also, in the South, where there was little silver, they used tobacco as money.

bidaskspread's picture

One question, if we transact in gold and silver how would that look? I see a dump truck pulling up to a local walmart to pick up deposits. Flatbeds of gold bars going down the highway to place orders. Seems very expensive to transact.  If you are proposing a paper backed by gold, you run into manipulation and the same system. Am I missing something here, is this what you want?

Kaiser Sousa's picture

who said anything about transacting in Physical Gold & Silver which if u r in the least bit familar with the history of MONEY in this country and wolrdwide u would know was EXACTLY how commerce was conducted until the creation of central banking and their fractional reserve fraudulent monetary paradigm...

as for what "see" u see the same myopic lame ass construct that most who have no knowledge of monetary history see so it does not deserve any consideration...i'll just ask u this...have you ever seen a Silver or Gold Certificate which was the CURRENCY of the United States?????

and, in what u "see" r people who own Stawks gonna be pulling up to Walmart in dump trucks full of  shares of Twitter or Facebook "to pick up for deposits"???? (stupid...)

as for what do i propose...for u i propose nothing...the tone of your comments imply u prefer to remain as u r...

good luck with that...

bidaskspread's picture

You mean the 10,000 dollar certificate with Salmon P Chase on it, yes I have seen that. So certificates to transact then I guess you are proposing. So I "see" people printing fake certificates backed by the gold plated tungshen that you will never lay your eyes on, yet you will still be able to buy that new fitbit you always wanted. You are really just beleiving that your gold is there. Same system as present.

Riddle me this, how does this gold protect you against 5 trillion underfunded PBOs in the US? What happens when people that are retired or planning on it find out those funds were never there. Total societal melt down is what happens. Water, Food, Shelter, and community is what you need, and our community doesn't accept shiny objects for payment. Don't worry ZH brother, I'll toss you a turnip for one of your gold paper weights.

 

Kaiser Sousa's picture

"You are really just beleiving that your gold is there. Same system as present."

last i checked all my physical is right where its always been...

hilarious...

ok now u had ur little bitty minutes of fame...

cya later genius...

get some rest or have another drink, snort, or toke...u r much too smart to waste ur time with me...

bidaskspread's picture

I am just starting...but you bring up a good point. Why is it that the black market doesn't 100% transact in gold? No tracking, easy launder, can carry large notional values at a time.  I understand you are trying to protect the overall value you have accumlated over your life but again is it really gold that is going to do that. I think a working farm would be a better option for numerous reasons.

Other item, you complain about Central Banks manipulating stocks. Yes, I agree with you 100% it is a farse. Have you thought why they might be doing this? It's a great question to ask. Why is it in the interest of the Federal Reserve and other central bankers to drive the stock market up? Trillions have been plugged into the market, and anytime the market retracts, back up. Why?

My answer is PBO's and open for suggestions. This was the last shoe to drop in 2008 and would have been the end. Look what is happening in Dallas. Look at the trucking union pension... insolvent in 300X percent equity increase since 2008. This is game over situation. A stock market correction will accelerate the pension liabilities that already has several trillion outstanding. The Dow Jones isnt a proganda index, it's a PBO meltdown meter.

liquid150's picture

So what you are saying is, you WILL accept them for payment? ;) 

bidaskspread's picture

Some people don't like charity, just a hedge.;)_

the man forever denied's picture

Dear Neighbor, the System (evil and corrupt as it is) is doing quite well, look around you. I agree with many of your points, but why so dogmatic? I perceive that you have endeavored to enlighten, so why the aggressive tone? Your arguments have validity, but the alternative views expressed here are equally worthy of consideration.

I have a small stack myself, safely tucked away at the bug out location, and for all the reasons you have mentioned. But I also have a similar stack of fiat beneath my mattress. Today I trade it for toilet paper, tomorrow it becomes toilet paper. Now that's value. Ever tried wiping your ass with a Silver Eagle? 

Maybe I'm missing something, or maybe I'm just not trying to overthrow the system. Because I tend to believe the system will overthrow itself. Survive the inevitable shitstorm, with love firmly planted in our hearts, what else truly can we do?

 

Kaiser Sousa's picture

"Ever tried wiping your ass with a Silver Eagle?"

so why the condescending tone...

"But I also have a similar stack of fiat beneath my mattress."

so do i....and???

"maybe I'm just not trying to overthrow the system."

did i say or suggest i was???

no, just getting out as far as possible...

liquid150's picture

Alex, K_S is just too stupid to realize that anything that can be used as a medium of exchange is money.

He's just a religious fundamentalist.

Onehundredpercentofnuthin...'s picture

Looks like Hungary has wised up. Hopefully it'll get contagious and spread everywhere. But I won't hold my breath waiting for it here in the good old USSA!

 

http://www.revolutions2040.com/victory-hungary-orders-rothschild-banks-l...

 

liquid150's picture

You are a riot.

I made more money in four hours(Trump night) than all the gold and silver you own.

You don't even understand basic economic concepts like opportunity cost. I can't believe anybody takes your nonsense seriously.

Armed Resistance's picture

You made shit. So they added some ones and zeros to your computer screen, did they? Unless you trade it quickly you will eventually learn that not only does it not exist, but that it never existed. My son won 120 tickets playing skee ball at the local pizza joint. He got a plastic spider and a yo-yo which means that because he's actually cashed his in, he is actually richer than you.

If you can't hold it, you don't own it!

liquid150's picture

Uh, I can use those profits to buy other stuff. Gold is just one example. But I can also buy real estate. Or food.

The difference is, I used the same amount of money you would spend on 5 1 oz coins and turned it into 50 1 oz coins in four hours.

I think I will take 50 gold coins over 5. Thanks.

Yen Cross's picture

  lol--- If you want your subprime exports, you can keep your subprime exports.

 # Q4 minus two percent

JamesBond's picture

Japanese are happy to have their yen slide; helps exports.

 

 

bada boom's picture

Looks like everyone wants to go back to the good old days.  The US increases its debt and buy things from around the world. It's a win win.

What could go wrong? /s

thismarketisrigged's picture

This shit has become on big giant joke.

 

every fucking criminal bank is up 20 pct in a span of 5 days, which makes zero sense.

 

i dont want to fucking here how rates rising is this good for banks, because if it really was, then the fed would have raised rates all the time, because they only care about the banksters and no on else. 

 

also, if this was so good for banks, everytime the fed announced a round of qe, or that they would not raise, banks would have free fallen, but instead the went up or stayed flat.

 

the fed needs to be destroyed asap, and if that is not possible, at the very least, audit the shit out of those criminal fucks and put them in the slammer where they belong for all there criminal  activities.

bidaskspread's picture

This why it's good at the moment:

Discount window rate : 75 bps

Us 10 year: 2.22 percent

30 year fha mortgage rate: 4.00 percent

They are making a 3.25 spread on a government backed product.

Raise the window and it becomes more interesting. 

 

Kirk2NCC1701's picture

Here you go again... acting like an ideologue: "How many angels on the head of a pin?"

You don't 'understand' the theories behind Gravity, but that doesn't stop you or a child from dealing with Gravity.

If you treat it by what it does, things get easier. I learned the hard and painful way that PMs are COMMODITIES. Precious Commodities, but Commodities nonetheless.

As such, their price will fluctuate accordingly -- subject not only to

   A. Supply v. Demand, but also (or more so) to

   B. Speculation and

   C. Manipulation (Pimp/Pump & Dump) games.

I continue to be amazed at the pathological naivete of many ZHers, who can't adapt this reality. Unlike many here, I accept and now fully EXPECT PM prices to vary more due to C than due to A or B.

Rainman's picture

I guess homebuyers will be knocking the doors down to get at those 4% mortgages.

King Tut's picture
King Tut (not verified) Rainman Nov 14, 2016 5:18 PM

Economically savvy Americans are waiting for 6% since 6>4- just like in football.

bada boom's picture

They are still low relatively speaking.  In the early 80's they reached 18%.  Unfortunately, home prices are way overvalued.

Unless someone is planning a crazy govt stimulus package.  It might be risky investment strategy, but I bet someone is playing it.  

 

Now that I think about it, probably Donald himself via commercial real estate.

Vlad the Inhaler's picture

And the homebuilders will be raking in the profits after their employees get deported and they have to hire Americans at twice the price, not to mention materials costs up.

the.ghost.of.22wmr's picture
the.ghost.of.22wmr (not verified) Nov 14, 2016 5:21 PM
"White nationalists see advocate in Steve Bannon who will hold Trump to his campaign promises" -CNN

 

God, I hope so!

Peak Finance's picture

These dumb fucks throwing around the words "White Nationalist" at anyone they don't like.

This fucking backfired BIG TIME when they started attacking anyone, no matter how sincere, as a  "Racist" simply for opposing a specific Obama policy.

"Racist" does not have nearly the sting anymore.

Now they re doing the same with the "White Nationalist" label.

 

A Nanny Moose's picture

Wordsmithing is a hallmark tactic of fucking communists.

Your chocolate rations just increased from 30g to 25g :)

 

charlie303's picture
charlie303 (not verified) Nov 14, 2016 5:23 PM

Should make some good money when this honeymoon wears off.

Fed Dec meeting now with extra spice!

Holy hand grenade of Antioch's picture
Holy hand grenade of Antioch (not verified) Nov 14, 2016 5:26 PM

Everything is AWESOME

Fahq Yuhaad's picture

It's all after Rancid Prepuce, Dan O'Bannon and Steve Munchkin came on board.

jamesmmu's picture

Today's DOW pattern is good news for bears. 10yrs up over 4% but DOW barely stay in green. The market no longer can sustain in this fast riasing yield condition, the bond market is now imploding. Investors try to claim the market by withdraw a little from stocks, but appearantly failed. Strong USD is a bad for speculation. Tomorrow if 10yrs still raising, I would say by Wednesday to Thursday, there is going to be a big selloff. A major correction should start between 24-28th this month. Bond panic is worst case for investors, they flee from bonds to stocks in a pace that they didnt expect, bonds bleed create a gaint liquidity crisis, even they start cash out on stocks and buying bonds again, billions dollar in liquidity if not trillion already disappear. I guess they mis-caculated in this rally, that happened so fast, ppl chasing it too. Up 1500pts with heavy volumes. This is a disaster. 

jamesmmu's picture

Marketwatch just stole my theory:

http://www.marketwatch.com/story/trump-induced-carnage-in-treasurys-spel...

and said will short if there is more advances

“I am cautiously adding to my short book on any further market advances as the great reset might have a shorter half-life than many presume,” Kass wrote in a research note Monday.

OccamsCrazor's picture

SO glad I did my mortgage refi earlier this year. Rates are up a full point over what I paid. 

 

NOBODY saw this bond blow up coming, but me.   

 

Everyone and I mean everyone saw lower and lower rates, thinking US would follow the rest of the negative yield rate world.  

 

The best part of this is its barely getting started, and derivatives are now being blown to pieces on an hourly basis. The more derivatives are forced to unwind, or simply blow, the more bonds will continue to sell off.  Yields have a long way to go up, and will eventually exceed what we saw in the early 80's, and will reach that far quicker than anyone here can imagine.  

 

Derivatives make the bond market super super risky, and that pressure is like trying to hold a Goodyear Blimp under water in the ocean.  They have been pushing the blimp lower and lower, which means either the walls of that blimp rip open, or the teathers let loose, and the entire blimp releases and explodes upward.  Thats whats happening right now.  The fibers of the teather are unraveling. 

When it goes, the rush upward (yields and interest rates) will go up so fast, people will crap their pants. 

You can't sell bonds fast enough, without losing 10's of trillions, and then you wont be able to sell stocks fast enough.  

 

This is not about Trump, the economy improving, or inflation from growth prospects.  This about a bond market implosion and reset unlike anyone has ever witnessed.  You wont be able to come up with the reasons, as chaos will reign, and all derivatives bets will be unwound.  

 

This is out of the control of central banks, the Fed, and the genie cant be put back in the bottle.  

Kaiser Sousa's picture

you're not gonna be very popular with that Gang of super traders who hang out here...

btw: your analysis would have been even more kool IN CAPS & BOLD...

just sayin...