"...we will all look back one day & wonder what Central Banks & investors were thinking when $17T of global bonds carried negative rates... it will be obvious that was the peak in disinflationary psychology..."
Policymakers are effectively making investing and risk-taking far too easy since the most important item over time in the valuation of the equity market is the current and prospective level of interest rates.
As a result of the holiday-shortened week and the truncated Treasury auction schedule, moments ago the US sold 2Y paper in what was a very solid auction.
In this week’s pick of energy and commodity charts, Asian jet fuel suppliers feel the pinch from Hong Kong’s weak demand as protests in the city persist.
From today’s valuations, a mere cyclical mean reversion in stock market multiples implies a 50+% drawdown in prices. Yet, too many investors remain oblivious to these valuation risks...
"today is exactly one month until Christmas", and as happens around this time of the year, it will be a truncated week due to the Thanksgiving holiday on Thursday that usually extends into a sleepy Friday for markets.
Year-end liquidity fears remain front and center as the $25 billion operation proved to be roughly half the required size to satisfy all liquidity demands.
After some jittery days last week, when it seemed that optimism for a "Phase 1" deal was cracking, all concerns were set aside over the weekend, when a barrage of mega mergers helped boost "optimism" and pushed S&P futures sharply higher.
"Considering that the repayment burden of existing debt has squeezed out the effective demand for new credit, and China is likely to become the next zero interest rate country"
