Business

Ever since "Trumpflation" emerged as a driver of risk-assets, a tension has emerged in capital markets: how much higher can rates rise (and by implication the US Dollar) before financial conditions become so tight that the equity rally reverses under the weight of the very reflation it is pricing in. Ten days ago, SocGen became the first to attempt an answer, by providing the following table, according to which the answer was roughly 2.6% on the 10Y Treasury: a level at which equities become rich relative to bond yields.

In what is not the first lawsuit (and certainly won't be the last) by naive shareholders to go after former unicorn darling-turned-fraud Theranos, its founder Elizabeth Holmes, and COO Ramesh Balwani, the co-founder of prominent dot com investment bank Robertson Stephens, Robert Colman, accused Theranos and Holmes of making false and misleading claims about its operations and technology while soliciting money from investors.

In its 2017 global strategy outlook note titled "Sparkle and Fade", Morgan Stanley is bittersweet about the future.

End of the beginning... or beginning of the end?

Weakness started overnight when USDJPY began to tumble...

Stocks. Closed. Red!!!! (and Small Caps were clubbed like a baby seal)

Authored by Ron Paul via The Ron Paul Institute for Peace & Prosperity,