A STRONG DOLLAR ALSO BEHIND BOND RALLY Some investors are buying U.S. Treasurys without hedging against the risk of a decline in the dollar International Carry Trade investors typically hedge their holdings of foreign bonds using derivatives AS A CURRENCY HEDGE, which allow them to borrow a foreign currency in exchange for their own and […]
TRIGGER$ June 2019
MARKET RE-POSITIONING UNDERWAY: HISTORIC 6 MONTH EQUITY OUTFLOWS
MARKET RE-POSITIONING UNDERWAY: HISTORIC 6 MONTH EQUITY OUTFLOWS Institutions are shifting in a massive way to Bonds and Money Market Funds as Equity Outflows over the last 6 months have been of historic and and unprecedented levels. The S&P has just suffered its third worst month since the US AAA- rating downgrade in August 2011, […]
BONDS OVERBOUGHT ON EXPECTATION OF A FORCED FED INTERVENTION
BONDS OVERBOUGHT ON EXPECTATION OF A FORCED FED INTERVENTION Longer-term Treasuries are overbought. These folks may consider taking some profits on exchange-traded index funds like iShares 20+ Year Treasury (NASDAQ:TLT). This would give us a bounce from our current support levels which we laid out earlier this week: Below is an article by Gary Gordon […]
ARE RECORD STOCK BUYBACKS APPROACHING AN “EMPTY TANK”!
ARE RECORD STOCK BUYBACKS APPROACHING AN “EMPTY TANK”! Warren Buffett is well known for comparing stock prices to GDP to assess whether stocks are becoming over-valued with inherent levels of excess risk. Stock buybacks this year continue to be financed with corporate leverage. However, the question is how much more leverage can corporations take on […]
INVESTORS FLEEING HIGH YIELD, SIMILAR TO FINANCIAL CRISIS
INVESTORS FLEEING HIGH YIELD, SIMILAR TO FINANCIAL CRISIS Investors are starting to come to a more realistic outlook about the forward-looking growth prospects, as well as the power of central banks to pump up asset prices. Tyler Durden reports that: It seems the warnings from PIMCO’s Scott Mather that: “We have probably the riskiest credit market […]
TRADE WAR CONSUMER INFLATION DEAD AHEAD!
TRADE WAR CONSUMER INFLATION DEAD AHEAD! Our expectations now are for a bounce in the US 10Y Note towards a potential right shoulder on a yield basis (SEE: SII – BONDS AT CRITICAL TECHNICAL INFLECTION POINT WITH INFLATION PRESSURES LOOMING). The unexpected reason for this will be inflation pressures, likely associated with: Tariff pressures on […]
CHINA CONSIDERING THREE TRADE WAR “TRUMP” CARDS
CHINA CONSIDERING THREE TRADE WAR “TRUMP” CARDS Tyler Durden summarizes the Chinese media reporting on what options China has to play on the escalating US-China trade war situation: Amid the escalating economic war between the US and China, discussions have intensified on how Beijing might stand up to the economic power of America, especially given […]
SII – BONDS AT CRITICAL TECHNICAL INFLECTION POINT WITH INFLATION PRESSURES LOOMING
SII – BONDS AT CRITICAL TECHNICAL INFLECTION POINT WITH INFLATION PRESSURES LOOMING The Macro Analytics “Secondary” Indicators for the 10Y US Treasury illustrates that with the recent drop in yield we have achieved our target yield which we established last fall. Here is the current 10Y US Treasury for yield as measured by the “TNX”: […]
IT INCREASINGLY IS ALL ABOUT GLOBAL DOLLAR LIQUIDITY
IT INCREASINGLY IS ALL ABOUT GLOBAL DOLLAR LIQUIDITY Below are some charts & analysis from Nedbank’s Mehul Daya, initially re-published by WorldOutOfWhack.com then further annotated with comments by Tyler Durden. All support the work and analysis we have written about at MATASII concerning the out of control global unregulated influence of the EuroDollar System. […]
IS UK’S “DEEP STATE” PLOTTING TO THWART BREXIT?
IS UK’S “DEEP STATE” PLOTTING TO THWART BREXIT? The Brexit issue is one of the rich against the poor. The working class voted for Brexit. Shockingly, the Labor Party is now a weapon of the billionaires against the workers. The wealthy adore the EU because mass migration allows them to pay poverty wages to their workers. […]