While the market itself has exhibited the exuberance we have all seen before (and never seem capable of learning from), BNP has quantified this love-panic relationship (and the news is not great for the bulls).
The Financial Times has confirmed that the Rothschild family will be placed in charge of the Greek economy with immediate effect. According to reports, Lord Rothschild will become the new economic adviser to Greece, controlling the country’s debt and negotiations with creditors. The Greek government are rushing to finalize the appointment before talks with Eurozone finance ministers resume on February 20. The Rothschild company will take over the role of the US based banking firm Lazard.
By EconMatters
We discuss how in general it is a very bad precedent for government officials to talk about the stock market, especially to in effect tie the performance of the stock market to how effective government policy is being handled or implemented in an administration. Especially given the high valuation market lead-in, this risk/reward scenario plays out very poorly for Trump.
Chatter about a multi-billion-dollar levered options strategy fund getting caught offside (and being forced - by its own strategy's hedging requirements - to buy into the rally, acting as the 'catalyst' for the almost unprecedented move) have been rife all week and our discussions of Catalyst Capital's NAV collapse - coinciding with the longest streak of gains in stocks in 4 years and VIX decoupling - led to a statement to CNBC earlier that their position-squaring was complete.
A lot has been said about the potential for a US-Canada trade war. And judging from a lot of what’s happened, especially with respect to a strengthen USD, it looks like currencies may be what could light the spark to the barrel of gunpowder.
THE BACKDROP