Business

With hedge fund liquidity (and their ability to absorb any market shock) at record lows, it seems retail investors are also all-in on stocks. As Ned Davis Research points out, total cash holdings for funds at lowest in 19 years.

In a Ned Davis calculation that treats the global investment portfolio as an amalgamation of stocks, bonds and cash, the latter now makes up about 17 percent of investor portfolios, less than half of its allocation in 2009 and close to the lowest since 1980.

While many have blamed today's spike in yields for the broader underperformance of the REIT sector, which sent the Bloomberg North American REIT index down 1.4%, its biggest one-day drop since December in a widespread selloff across all property sectors with 194 of the 214 stocks in the index lower today, it's more than just the jump in rates that is slamming the rate-sensitive sector.

Trump might want to put a call in to Janet Yellen.

The Fed is supposed to be a neutral, independent entity. However, that myth went out the window when Bernanke “gifted” QE 3 to Obama in 2012 to aid with the latter’s re-election bid.

Something is not right here...

As Sven Henrich ( @NorthmanTrader ) points out, the McClellan Oscillator (which measures advance-decline/breadth) is making lower highs and plunging as the stock market soars on the heels of record retail inflows.

Furthermore, Henrich notes that the McClellan Oscillator's plunge implies a VIX around 16-21... it's at 11.45! This has never happened before.

Via Kevin Muir of The Macro Tourist blog,

Last week’s hawkish Federal Reserve guidance sent the front end of the yield curve for a tailspin. In the process, the odds of a March hike went from less than 50% to almost 100%.

The movement in the Fed funds futures curve was swift and vicious. The whole curve shifted higher (in terms of yield), but the April future backed up the most.