David Stockman: Here’s Why This Time Is Different

“But that’s not the half of it: Those massive buys were accompanied by a giant amplifier in the form of front-running speculators and arbitragers who hang around the casinos.”


‘Run Screaming For The Hills’: Presenting The Fallacy Of Disaggregation

“Yet, we would argue that the mere fact that investors fail to spot trouble in a single sector should not be grounds for comfort: the reason why no single sector stands out may be that all the sectors are mispriced.”

‘Reluctant’ Bulls And The ‘Psychological Risk’ Of QT

“But market narratives may dominate our rational analysis. If markets believe that global QE has been an important driver of the current rally, then its impending removal may nonetheless pose a psychological risk to investor sentiment.”

In 2019, It Turns Negative.

Plan accordingly.

Super Mario: Full Week Ahead Preview

As usual, the docket is full and the risks are multiplying.

Stark Raving Mad.

“Let me in.”

Apocalypse Now (Again).

Well for those who had their doom bunkers all prepped and ready, there’s “good” news on Tuesday – the apocalypse is back on.

‘I Can’t Do It’

“I can’t do it. I can’t embrace the machines and the vol selling and the ETF parade and the central bankers’ “communication policy”. So I’m NOT happy. I don’t sleep well. I DON’T trust the Fed, much less love them, and I never will.”

‘Billions And Billions And Billions’: ECB, BoJ, And Your Full Week Ahead Preview

If you didn’t get your fill of hand-wringing over DM central banks last week, then you’re in luck…

‘Beware Global Tapering’: Behold The ‘Safe Bond Supply Shock’

What effect will Fed balance sheet normalization have on Treasury yields? That’s quickly becoming something of an obsession for market participants and rightfully so. After all, no one (least of all the Fed itself) has any idea how this is going to work or how it will impact markets. This situation is complicated immeasurably by…

El-Erian: 6 “Key Things You Need To Know” About Your Market “Accomplishments”

“Record levels for several widely followed country indexes occurred in the context of notably muted volatility, adding to the sense of investor comfort and accomplishment.”

Jobs Report, Chilled Urine, And Kashkari’s Rib Roast: Full Week Ahead Preview

If you were following along last week, then you already know what to look for in the week ahead. After the hawkish procession in Sintra, Portugal, which catalyzed an impressive euro rally and led directly to sharply higher DM rates, it’s now all about how markets attempt to price the beginning of the end for accommodative…

Peter Pan’s Revenge: Kuroda Thinks You’re Crazy To Think BoJ Is Not Still Crazy

“The moment you doubt whether you can fly, you cease forever to be able to do it.”

Nikkei Tops 20,000 On Batshit Crazy BoJ Balance Sheet; Global Stocks Rise Ahead Of Jobs

Well, the Nikkei crossed 20,000 for the first time since 2015 overnight. And really, why shouldn’t it? After all… lol.. Bank of Japan’s Total Assets Likely Surpassed 500t Yen: Nikkei — Walter White (@heisenbergrpt) June 1, 2017 The move was of course also helped by the dollar (i.e. a weaker yen), which got a lift…

“A Pretty Eclectic Collection Of Unrelated Developments”

SocGen’s Kit Juckes probably summed up the overnight session best: Overnight currency drivers have been a pretty eclectic collection of unrelated developments. That sounds like it could be an ill-advised sequel to “A Series Of Unfortunate Events“: “A Pretty Eclectic Collection Of Unrelated Developments.” First there’s the kiwi which collapsed. That comes courtesy of the…