And so the holiday-shortened week comes to a close and it delivered everything that could have been reasonably expected of it.
If you don’t have a sense of humor, the market’s reaction to the Fed minutes was probably pretty frustrating for you.
On the bright side, remember that people were talking about high yield and canaries in November and we got through that ok.
You know there’s probably something a bit quixotic about the crusade to warn of an eventual blowup in the high yield ETF space. But…
Boy, I’ll tell you what: you people are yanking money out of bond funds like there’s no tomorrow.
Ok, so do you want to see something funny?
Looking for a new leading indicator? Here’s one candidate.
But remember, at some point people will start selling the underlying and that’s when shit gets really messy, especially if that selling ends up being prompted by massive outflows from the ETFs whose holders have no conception whatsoever of the underlying liquidity mismatch.
Translation: this is not a drill, dammit.
I remember when…
“We’ve come too far!”
What to say about Tuesday? Well, a lot actually.
All eyes on (geo)politics. And Canada. Of course.