It just gets worse and worse – and funnier and funnier.
You can file the charts shown above away in the “extremely useful information to have at your disposal” folder and we would be willing to bet you’ll find yourself referring back to them sooner or later.
“During the past five years, May has been the worst month, on average, for EM FX. I remain a structural long-term bull on emerging markets, but the next month could see a painful cleanout of complacent positioning.”
“With French political risk significantly reduced (even if thereâ€™s still a two-week second round campaign to negotiate), an improving global economy, steadier oil prices, and most of all, range-bound US yields and a lack of fear of rapid Fed tightening, investors see few demons and are off in search of yield.”
“What weâ€™ve had so far this week, I know itâ€™s only Tuesday, has been a repricing without the benefit of meaningful price discovery along the way. Gaps during the Asia-Pacific opening are one thing. Ones followed by flat-lined price action suggest order books emptied followed by â€œSo what do we do now?â€ And if there isnâ€™t a quick follow-through in momentum, the next question will be â€œWhat have we done?â€