Record-Smashing 2017 Ends With Stock Slamfest - Bitcoin, Bonds, Bullion Best

Ugly end...

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But on the year, the dollar tanked (worst since 2003), stocks and bonds (the long-end) soared higher, commodities rebounded dramatically, cryptocurrencies exploded, and gold had its best year since 2010 as VIX saw its lowest average in history...

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and all that driven by the biggest increase in central bank balance sheets since 2011... anyone else feel like this... (our estimate is we are at around the 30 second mark currently)

 

2017...

Now that was a year for stocks...

  • The Dow is up 25% over 2017, putting it on track for its second straight annual increase, as well as its best year since 2013.
  • The S&P is up 20% year-to-date. Like the Dow, it is set for its second straight annual increase and its best year since 2013.
  • The Nasdaq is up 29% in 2017, its best year since 2013. 2017 is set to be the Nasdaq’s sixth straight annual gain. According to the WSJ Market Data Group, this is the longest streak for the Nasdaq since a six-year streak lasting from 1975 to 1980.
  • The Russell has gained 13.6% in 2017. The index is set for its second straight annual gain.

 

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Additionally, The Nasdaq also has posted a record number of all-time high closes this year.

Vols across every asset class collapsed to multi-year (if not record) lows...

 

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Treasuries were extremely mixed on the year with 2Y Yields soaring 67bps and the long-bond yields collapsing 34bps...

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The collapse in the yield curve (2s30s) is the biggest flattening since 2007...

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This is the flattest yield curve since Oct 2007...

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The Dollar was a bloodbath this year - the biggest loss for the greenback since 2003...

 

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All the major commodities ended higher on the year with copper's recent crazy rampage leading the way..

 

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While all the headlines have proclaimed Bitcoin the big winner, its 1400% return in 2017 is dwarfed by the explosion in Ripple...

 

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In December...

  • The Dow is up 2% in December. This will mark its ninth straight monthly rise, its longest such streak since 1959.
  • The S&P is up 1% thus far this month. This will also be the S&P’s ninth positive month in a row, representing its best streak since 1983.  On a total-return basis, however, the S&P is set for its 14th straight monthly gain, which will lengthen a record... and is the first "perfect year" of 12 straight months in one calendar year gains.
  • The Nasdaq is up 0.5% in December, which will represent its sixth straight monthly increase. The tech-heavy index has risen in 13 of the past 14 months.
  • The Russell is down 0.5% in December. breaking its longest winning streak since Feb

Ugly close to the month...

 

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30Y Yields were also lower in December overall as the rest of the curve was higher (10Y Unch)...

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The dollar dropped for the second straight month led by Aussie, Yuan, and Euro strength...

 

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As the dollar weakened following The Fed rate hike so commodities all started ramping higher in December...

 

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On the week...

Santa failed to deliver this year (so far) with stocks ending a huuge year with whimper... tumbling into year-end with all major indices red on the week

 

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Nasdaq was smashed lower for the 5th day in a row...

 

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Bonds were very aggressively bid, and the yield curve flattened dramatically...

 

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Bond yields and the dollar tracked each other all week...

 

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The dollar fell for the 3rd straight week - the biggest weekly drop in almost 4 months...

 

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And cryptos surged with only Litecoin lower, despite the Korean headlines, as Ripple roared...

 

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Gold surged to $1310, near 3 month highs, this week but silver and crude led the way...

 

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Finally, if there is one chart that sums up 2017, it is this...

 

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Happy New Year to all... and remember, on Tuesday... It's...

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