The setup was terrible, with falling commodities, a downbeat Asian session, and junk jitters weighing on sentiment.
“Many of these same investors, however, tend to agree with us on a two year view that things are likely to end very badly.”
I’m not entirely sure what to make of the commentary on this. There’s no “right” way to write about it. It’s almost a “see no evil, hear no evil, speak no evil,” type of deal.
The fireworks started in Japan and that’s where they ended.
“This is the big one, Elizabeth!”
“So maybe it’s not so much that equities are out of synch with high yield, as much as it is”…
What happens over the weekend no longer remains confined to the weekend.
In the end, the “truth” will prevail.
“Well in a low vol world, yesterday was fascinating and a small shock to the system.”
Thursday, bloody Thursday.
Are we there yet?
“The only thing to fear is fear itself.”
“Let me in.”
“It has been too long. Way too long by the standards of its predecessors, and yet this credit cycle still shows few signs of an impending turn.”
“If you are adding to your long-term holdings of stocks and other risk assets at current market valuations, you are likely to be betting — knowingly or not — on a combination of three drivers of future returns; or you are planning to sell your holdings to someone who is or will be making that bet.”