"If these equity ETF flows start reversing, the resultant rise in bond-equity correlation would likely induce de-risking by risk parity funds and balanced mutual funds, magnifying the eventual equity market sell-off."
"Equity investors have had an amazing time over the past four-five years. But now, the surge in bond yields is reaching the pain threshold for equities."
Following reassuring words from US securities regulators yesterday, Bitcoin has extended its rebound back above $8500 (from below $6000), shrugging off Goldman Sachs' latest report questioning cryptocurrencies' long-term existence.
The godfather of gaming is no more: as reported last night, Steve Wynn, founder and CEO of Wynn Resorts, stepped down amid sex abuse allegations. Below are some analyst reactions to the news.
Goldman's push into traditional banking and consumer finance reached a new milestone Tuesday morning when the Wall Street Journal reported that the investment bank is in talks to provide financing for iPhone purchases.
"I started with 50k and traded all the way to 4 mill over 2.5 years, started using more and more margin, started taking it less less seriously, what could go wrong?"
ETPs had to buy 282,000 VIX futures to rebalance their short gamma: "this was the largest VIX buy in history, dwarfing Friday’s previous record of 78,000."
"...misses pushed our broader wage growth tracker to just 2.1% as of Q4...Rising concentration of activity and employment has shifted the balance of bargaining power from consumers and workers to firms and employers."
... if risk parity and CTAs are still unwinding equities in the coming days, then it will be against a continued rise in volumes due to higher volatility.
"With a 4% drop in cash equities and even greater decline in futures, the VIX finally went bananas rising 20 points to the highest level since Aug 2015."
It’s true global growth is still supportive, and so this is unlikely to be the start of a long-lasting bear market. But, one of the other pillars behind the rally has been severely weakened during the past month: liquidity.
"If open trade, and open capital flows are flawed ideas, why do the Davos elite support them? The answer is that these theories, which have superficial appeal to everyday citizens, are the perfect smokescreen for the elites’ hidden agenda..."
