"There seems to be a very large consensus that markets have entered into a 'permanently high plateau'...this fairytale-like mindset has created an overwhelming sense of complacency... The next bear market will not be like the last, because it will be spread across the entire financial ecosystem.."
"...in the Swiss resort, there’s almost a sense of euphoria, it is extraordinary, and I think there’s a sense of complacency...but out there among the masses, there’s an avalanche of discontent..."
U.S. authorities will arrest several people on Monday in a federal investigation into manipulation in the U.S. futures market by Deutsche Bank, HSBC and UBS.
The merger will combine such popular brands as Dr Pepper, 7UP, Snapple, A&W, Mott’s and Sunkist with leading coffee brand Green Mountain Coffee Roasters and the Keurig single-serve coffee system.
Japan's new cryptocurrency regulations were put to the test last week when CoinCheck - a popular, if unlicensed, Tokyo-based crypto-exchange - became the target of "the biggest heist in crypto history."
The recent frantic moves in Treasurys and the dollar continued on Monday, and while the dollar collapse seems to have slowed for now, this is as a result of an acceleration in the Treasury selloff, with 10Y yields blowing out.
Apple notified suppliers that it had decided to cut the target for the period to around 20 million units, in light of slower-than-expected sales in the year-end holiday shopping season in key markets such as Europe, the U.S. and China.
“Complacency in the markets is a key risk: Valuations are at unprecedented levels. The probability that we’ll encounter an unforeseen crisis on the next part of our journey is high... Everyone feels, despite the exuberance in the market, that we need to dial down on the risk."
"The world began to send consumer goods to the United States in exchange for waste paper with no relationship to gold. The scam of the century was now complete. It is a farce that relies on the collusion between banks, federal agencies, rating agencies and governments to create the illusion that US government bonds are the safest asset in the world, even more so than gold itself..."
"Currency wars will end with winners and losers, but generally speaking, a weak US dollar with low US interest rates tend to enhance excessive liquidity, exerting a positive effect on risk asset prices"
According to BofA, investor cash allocation has just dropped to a record low of just 10%, while investor equity exposure is rising at the fastest pace in 10 years as the euphoric buying euphoria forces everyone to go all in.
Not only does this particular indicator also have a 100% hit rate once triggered, but on 11 out of 11 "sell signals" since 2002, the market always dropped on average by 12% within 3 months after triggering.
Davos elite hear warnings of complacency akin to 2007 as economic risks grow. Blockchain has potential to revolutionise the world of money – if not co-opted by elites. Davos theme explores massive inequality across the globe while eating $60 hamburgers.
