Asia

It all started in mid/late 2014, when the first whispers of a Fed rate hike emerged, which in turn led to relentless increase in the value of the US dollar and the plunge in the price of oil and all commodities, unleashing the worst commodity bear market in history.

The immediate implication of these two concurrent events was missed by most, although we wrote about it and previewed the implications in November of that year in "How The Petrodollar Quietly Died, And Nobody Noticed."

I received an e-mail from a friend who is a Harvard graduate and an orthodox Catholic. He takes exception to R.R. Reno’s column on meritocracy, which I cited favorably today. I can’t reproduce his letter verbatim here, because he wants to protect his privacy. But I have edited it to his satisfaction, and present this version with his approval:

• Investors dump stocks (Reuters)
• Global Bond Rally Near `Panic' Level With Japan Yield Below Zero (BBG)
• Global Growth Fears Hit Bank Stocks (WSJ)
• GOP Race for Second in New Hampshire Intensifies (WSJ)
• N.H. Primary: Where Each 2016 Candidate Needs to Place to Build Momentum (WSJ)
• ‘Risk parity’ strategy shows strain (WSJ)
• U.N. fears for hundreds of thousands if Syria troops encircle Aleppo (Reuters)
• World's Negative-Yielding Bond Pile Tops $7 Trillion (BBG)

With China offline for the rest of the week, global markets have found a new Asian bogeyman in the face of Japan which as reported last night saw its markets crash, and the Yen soar, showing that less than 2 weeks after the BOJ unveiled NIRP, yet another central bank has lost control.

Two years ago, just before Michael Lewis released Flash Boys starting a sharp if brief revulsion against parasitic, predatory High Frequency Trading frontrunners, which delayed Virtu's IPO by one year, we broke down Virtu's 2013 net trading income by product line. We were not surprised to find that of the $45 million in total growth, the largest income category, US stocks growth was a tiny 5% of all, rising by $2.3 million in 2013. In fact, between EMEA, APAC and US Equities, there was very limited growth in 2013, while commodities posted an outright trading income decline.