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…

Wile E. Coyote Is Back! One Bank Thinks You’ve Run Right Off The Cliff

“We remain very skeptical that this will happen. To our minds, asset prices are ultimately still much more reliant on central bank balance sheet expansion than recent experience might suggest. Here’s why”…

Kuroda Shrugs, Twitter Lampoons Sweden, Deutsche Crumbles: Welcome To Thursday

Ok, so as detailed earlier this morning, the first thing you should note about the overnight session was the action in the loonie and peso following Donald Trump’s decision to avoid ripping apart NAFTA (for the time being). You can read the full story on that with some additional color from FX trader Mark Cudmore…

Visual Proof That Central Banks Killed Active Management

“I’ve gone to great lengths to try and disabuse retail of that notion, and not because I want to make people feel stupid. But rather because I want investors to understand that if central banks pull back and markets are allowed to trade in a two-way manner again, suddenly everyone is going to realize they weren’t the gurus they thought they were.”

A Good Bottle Of Scotch Would Be Nice: Making Sense Of Market Nonsense

Thank God for four months of sobriety because the old Heisenberg would have been at the bottom of a good bottle of scotch right now…

Good News! “Only” 16% Of The World’s Total Debt Now Has A Negative Yield

The only question now is whether the long list of “known unknowns” eventually conspires to put the brakes on the reflation meme and trigger a central bank response that plunges us right back down the “accommodative” policy rabbit hole.

This Is One Rally You Probably Shouldn’t Fade (And I’m Not Talking About Stocks)

Holy Schatz! Again.