If Everything's So Awesome, Why Did This Happen Yesterday?

Monday saw US equities ramp exuberantly on the back of a one-way street in USDJPY as the narrative proclaimed that "the world didn't end" and therefore we should buy stocks. There's just one thing...

The biggest bond ETF in the world saw the biggest inflow of funds in its history at the same time.

In fact, TLT - BlackRock's 20+ Year Treasury Bond ETF has seen no outflows for 12 days.

Inflows have averaged over $150 million per day for the last week, which, as @SentimentTrader explains has led to significant gains 3-, 6-, and 12-months later...

 

And just in case you were wondering what these 'crazy' bond-buying freaks are seeing that the 'smart' equity investors are not...

It's the collapse in actual 'hard' economic data - as opposed to the survey-based 'soft' data that remains full of hope.

Comments

GUS100CORRINA Ben A Drill Tue, 09/12/2017 - 15:28 Permalink

On a more serious note, JOSE has NOT gone away just yet.JURY is still out ... will America REPENT or NOT? Remember the 10 Plagues of Egypt?While different from list below, we have seen WATER, FIRE, EARTHQUAKES and WIND involved to date. What is next: FINANCIAL COLLAPSE, INSECTS and DISEASE? Scary stuff if these recent events are a message from GOD.Plagues of Egypt ...Plague 1 — water turned into blood; fish died. ...Plague 2 — frogs. ...Plagues 3 and 4 — biting insects and wild animals. ...Plagues 5 and 6 — livestock disease and boils. ...Plague 7 — fiery hail. ...Plague 8 — locusts. ...Plague 9 — darkness.

In reply to by Ben A Drill

Dumpster Elite Ben A Drill Tue, 09/12/2017 - 15:57 Permalink

I'll agree with you to a point. Science is SUPPOSED to "set people free." And yet, we are DENIERS if we do not adhere to "Global Warming" (Climate Change.) And, there are no longer Males and Females...now, you must recognize any number of "genders". I'll always be from the old school on that one. There are Males, Females, and those that used to be in the Sanitarium. Now we bow down to their "brave self-awareness." (ummmm, no...they're just crazy people.)

In reply to by Ben A Drill

Manipuflation Tue, 09/12/2017 - 15:24 Permalink

I forgot about my life insurance policy until the other day.  Cash out doubled because of the crock market.  What a scam.  I totally forgot about that "investment vehicle".  I am worth more dead than alive and Mrs.M now knows this.  So I have that going for me.

jmack Tue, 09/12/2017 - 16:53 Permalink

Quckly becoming single payer stock markets and central banks become the only purchaser of equities.  are central banks too big to fail?