To all the Twitter users who are angry at the British Geological Survey for posting an assessment of an earthquake and roiling markets, we would gently suggest that you consider the fact that earth science research is what they are supposed to be doing.
That is, it is their job to study geological events. It is supposed to be your job and the job of the robots “manning” the trading desks to decide what those events mean for markets.Â
The bottom line is that between another powerful hurricane approaching the U.S. mainland, U.S. markets catching up with their global counterparts in terms of pricing in North Korea after the long weekend, the DACA decision which portends more bickering in Washington, and the looming debt ceiling debate (with the specter of a technical default showing up in today’s decidedly poor 4-week bill auction), it was death by a thousand cuts.
“Just to be clear, nothing moved enough to indicate any panic or identify where safety can really be found. And that isn’t all good. Asset prices pretend to be consumed with issues politic, but in fact trivialize everything.”
Last night, we asked if gold might be overbought amid all the fretting over whether North Korea will or won’t pick a nuclear fight with Donald Trump (which is a lot like arming yourself with a butter knife and jabbing it into the ribs of a coked-out chimpanzee waving an M4A1 carbine).
But again, part of the story here is that gold could get some of the haven flows that would normally go to the yen. Because if this gets bad – and reports that Japan is preparing plans to evacuate 60,000 citizens living in or visiting South Korea suggest it might – then investors will likely shun the yen in favor of bullion and the franc (because as far as we know, Kim isn’t firing missiles at Switzerland).Â
Ok, well this is interesting. Nikkei is out reporting that Japan is planning for a possible
“Though considered a tail risk, a military confrontation on the Korean peninsula could see Asian currencies falling 5% to 10% and the region’s equities plunging 20%,” UBS Wealth Management Global CIO Mark Haefele and head of Asia Pacific investment Min Lan Tan write in a new note.
These things have a way of reversing themselves in the overnight as investors have been conditioned to fade the initial reaction to North Korea news, but that will be tested given the severity of the provocation.Â
Right, so the storm wasn’t supposed to come until next month.
Of course these haven bids come and go faster than a communications director at the White House…
“I am fully committed to working with XIV to get. This. Job. Done.”
The crowds are huge for the end of the world…
Are you looking to hedge all of the risk exposure you put on today when
While there’s no way to know, ahead of time, if “this time is different” in
Although I can’t imagine why…
Draw your own conclusions…
And just like that, all of the good news trial balloons we got from McConnell on Monday (debt ceiling guarantee) and from Politico on Tuesday (tax reform moving ahead) were rendered null and void…
“The ‘she loves me, she loves me not’ thought process could lead to on-off marketsâ€
“It wasn’t even like it was close”…
“Ideological interpretation: Looking down is a mistake — the system works only if no one opens his eyes.”
“You know what? It’s fine.”
While we’re reasonably sure the dip buyers will show up at some point (God bless ’em), they better get on the job fast or they’re going to have a lot of work to do.
Heads up, it is ugly out there folks.
Tick, tock.
“That which does not kill us, makes us stronger. A much debated concept, but in terms of navigating markets, there’s a lot of truth in it.”
And now back to your regularly scheduled rally.
“And you will know my name is the Lord when I lay my vengeance upon thee!”
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