Yesterday, in the aftermath of the shocking news that the Third Avenue Focused Credit Fund was liquidating and had gated investors due to its "illiquid" portfolio, we had one simple prediction:
If Trump is not what the Republican Party is about, then Republicans should be saying, publicly rather than in the backrooms of swank DC restaurants, that they do not want him as their party's nominee. And that, if Trump is nominated, they will not back him. Yes, Trump will threaten to run as an independent. But that threat has always existed, and it will always exist unless the party nominates Trump.
Four months ago, China decided to devalue the Yuan sending a shudder up and down collateral chains globally and forcing carry trade unwinds and derisking everywhere. Friday August 21st saw notable weakness as that weakness washed ashore in US equities.. and then Black Monday struck. The ensuing debacle stalled The Fed and shocked markets.
The last week, we have seen China devalue the Yuan very significantly, EM capital markets turmoiling, and today, that was ashore in US equities... what happens next?
Deja vu?
Some folks were suddenly forced to sell...
And for those "shocked" that credit markets sparked this...
Submitted by Lance Roberts via RealInvestmentAdvice.com,
While the world patiently waits for Janet Yellen to raise interest rates this month, the markets have been unable to decide as of yet whether such an event is good or bad thing.