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Trumpxuberance...Until It's Not

Submitted by Howard Kunstler via Kunstler.com,

“Markets shrugged off the Brexit vote in a couple of days. They shrugged off Donald Trump’s election in a single day. They shrugged off the Italian referendum result in a couple of hours. Heck, in this mood they would shrug off an alien invasion of planet Earth.”

— Albert Edwards, Société Générale

Money Managers Have Never Been More Sure That Interest Rates Will Continue To Rise

Money Managers Have Never Been More Sure That Interest Rates Will Continue To Rise

In August of 2014, amid tapering QE and talk of normalization, speculators in the world's most liquid money-market instruments went all-in with record bearish bets on eurodollar futures. They were wrong and the short-squeeze sparked a slow-motion flash-crash in bond yields (10Y from 2.65% to 1.86% in a month).

Today, as we await words, smoke, and mirrors from Janet tomorrow, the world's speculators are even more all-in...

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