Ever since a few far-sighted, contrarian traders made a killing by betting on the collapse of subprime in 2005 and 2006 - and by implication on the implosion of the capital markets - a trade famously resurrected in the latest Wall Street movie The Big Short (whose Michael Burry recently warned that "The Little Guy Will Pay" For The Next Crisis, again) everyone has been dreaming to uncover the next "subprime" - a trade that has a 20-to-1 upside to downside ratio, which can be put on in massive size, and which would lead to a quick and lucrative retirement.

Iranian protesters are seen on social media storming Saudi missions in Iran after Saudi Arabia executed Nimr al-Nimr, a prominent Shi’ite Muslim cleric, and 46 other prisoners. Haaretz reports: Demonstrators broke into Saudi Arabia’s embassy in Tehran before being cleared away by the police, Iran’s ISNA news agency reported, after gathering there to denounce the kingdom for executing the cleric. Images shared on social media showed Iranian protesters starting fires at the embassy building. One photograph showed a room with smashed furniture purportedly inside the building.

Until recently healthcare had been the only sector offering any optimism from an earnings perspective but even that has collapsed now. The three-month earnings revision ratio (ERR) fell for the fifth month in a row to 0.53 from 0.55 - its lowest level in nine months, indicating twice as many cuts as increases. As BofAML notes, this is well below the long-term average of 0.84, and given S&P 500 sales revisions have collapsed to April 2009 lows, they forecast more cuts are likely to come... and a muted January effect looms.

Gisela Mota Ocampo was assassinated this morning, a day after being sworn in as mayor for Temixco, Morelos. Fifty-eight other new mayors assumed office without incident in Oaxaca this week. Mexico News Daily reports: A federal deputy of the Democratic Revolution Party (PRD) from 2012-2015, Mota was murdered at her home in Pueblo Viejo. She had won election for mayor last June.

In a new strategy document, Russia has for the first time appraised the United States as a threat to its national security. Times of India reports: The document, “About the Strategy of National Security of Russian Federation”, was signed by President Vladimir Putin on New Year’s Eve. It replaces a 2009 version, endorsed by Dmitry Medvedev, president then, and the current prime minister, which mentioned neither the United States not Nato. It says Russia has managed to heighten its role in solving global problems and international conflicts.