By Mark O'Byrne of GoldCore
Art Market Bubble Bursting - Gauguin Collapses 74% To $22 Million
Te Fare by Paul Gauguin - Source: Christie’s
Russian billionaire Dmitry Rybolovlev paid €54 million or $85 million for a landscape by Paul Gauguin in a private transaction in June 2008. Yesterday, he incurred a whopping 74% loss on his store of value "investment" as reported by Bloomberg:
The cost of funding for your average joe, average corporation, and average swaps trader, surged overnight. 3M Libor rose by the most since Dec 2015 (Fed rate hike) to the highest level since April 2009.
Biggest jump since the fed rate hike in Dec 2015...
As Reuters reports, the cost for banks to borrow funds in U.S. dollars surged by the most since December 2015 on Wednesday, a day after a series of Federal Reserve officials jolted short-term interest rate markets with talk of a near-term rate rise.
One day after a duo of Fed presidents unleashed the biggest plunge in 2 month Fed Fund futures since 2008, sending March rate hike odds from 50% to 80% in under two hours...
Auto sales posted a slight headline miss for February 2017 with an actual SAAR of 17.5mm vs. expectations of 17.7mm, despite a huge surge in incentive spending YoY. Individual company results were decidedly mixed with GM and Ford both posting small beats while Chrysler/Toyota/Honda missed.
Via Michael Lebowitz of RealInvestmentAdvice.com,
“Today’s equity market valuations have only been eclipsed by those of 1929, and 1999.”