Boris The Bullet-Dodger.
Seemingly unwilling to risk any further damage to his already low approval ratings, Trump ultimately
Seemingly unwilling to risk any further damage to his already low approval ratings, Trump ultimately
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.”
“Sure, they’re unlikely to seek shelter in Bitcoin and other cryptocurrencies just yet, not even Millennials. But they may well prefer a haven basket that includes more”…
“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
Now admittedly, “2” is a small sample size, but…
Right, so the storm wasn’t supposed to come until next month.
“I am fully committed to working with XIV to get. This. Job. Done.”
The crowds are huge for the end of the world…
“Yuan strength during periods of North Korea related turmoil is becoming as reliable as the demand for yen or gold.”
Although I can’t imagine why…
Your refund will be escaping this death trap with your life…
Once upon a time all this was offset by a sense that a strong currency was a sign of national virility, but such superstition is passé. It’s all about a total eclipse of the sun, today….
“There are roads which must not be followed, armies which must be not attacked, towns which must not be besieged, positions which must not be contested…†– Sun Tze, The Art of War
“There is an old saying that “nothing is certain except death and taxes.” These days, we can probably add a third inevitability: that someone calls for the implosion of China’s economy or credit market.”
“But the ratio of the VVIX to VIX reached its highest level in history last week, suggesting that, although vol has remained relatively anchored (Exhibit 28), markets are already significantly pricing the more latent risk that the volatility regime shifts.”Â
Draw your own conclusions.
“Deterrence counts on the rationality of the opponents. The build-up of mutual threats and the shows of force in the past weeks have unsettled markets, with risk assets and high-beta currencies underperforming, and it is likely to continue.”
“This time is different” is famously one of the most expensive phrases in finance, but perhaps this time really is different.”
“But the fun may not be over yet”…
But you know what they say: “it’s probably nothing.”
Who’s afraid of the yuan-won?
“And you will know my name is the Lord when I lay my vengeance upon thee!”
How much longer can this run?
Remember, you can always burn your stock certificates to keep warm in a nuclear winter.
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