Bonds have gievn up, comodities have given up, inflation expectations have given up, bank stocks have rolled over, and even 'soft' data is starting to rollover... still the 'rally' is in tact, it's just a fleshwound according to the business media...
It started off so promising for Anthony Scaramucci: a prominent supporter of Donald Trump, even when nobody else believed in last November's shocking outcome, the former SkyBridge president was considered a shoo-in to a high profile position in the new White House, which prompted him to conduct an accelerated, and according to some questionable, sale of his SkyBridge Capital fund of funds to Chinese billionaire investor Chen Feng, which netted the Mooch over $100 million.
The first signs of financial distress often surface when CFO's start to play games with their balance sheet. First, comes the ballooning of current liabilities as payable balances are stretched out to the max to preserve cash. Next, the most astute vendors catch on fairly quickly to the gamesmanship and move to COD terms for new purchases. Once that happens, the gaming CFO typically faces a 'run on the bank' which prompts a full revolver draw and generally, soon thereafter, a bankruptcy filing.
Via Dana Lyons' Tumblr,
Fear finally made its way into the equity options market at the end of last week – at least for a day.
After months of (well-documented) investor complacency, recent stock turbulence has begun to introduce some fear back into the market. It has been manifested in the volatility market, as we covered extensively in our Vexing Vix miniseries last week. And after last Thursday’s sharp selloff, fear has now also crept into the options market – at least for a day.
Forget the "great rotation" from bonds into stocks - and certainly today when the 10Y dropped as low as 2.175% - a far greater rotation taking place currently is out of the US and into European equities, according to the latest monthly Fund Manager Survey released today by Bank of America.