Remember “irrational exuberance”?
Well, in addition to (near) record low 1-month implied vol, a 10 handle VIX, record high FX vol/equity vol ratios, and a smooth S&P implied vol term structure bereft of any front end Trump “kinks”, we can now add “absurdly low put/call ratio” and depressed short interest to our list of warning signs.
Via Bloomberg
The camel is loaded now all we have left are these ‘few pieces of straw”.