As Eric Peters explained a few days ago, by pushing prices to overvaluation and reducing yields on every investment asset, central banks have destroyed investors ability to create a portfolio that can withstand even the slightest economic disruption. Peters correctly describes it as "the most obvious disaster in finance."
Submitted by Jacob Hess via OilPrice.com,
The Chinese slowdown did more than drag down its own economy, it singlehandedly created financial tremors throughout the global financial markets. With consistent growth rates well over 6 percent, China's economic health is an integral part of global expansion.
One recurring theme observed throughout the oil rally since the February 13 year lows, has been increasingly more aggressive hedging action by producers, who are willing to give up upside gains in order to protect from yet another swoon lower in prices. And, as Goldman cautions in its latest note on ongoing imbalances in the oil market, "the rally in long-dated prices has taken prices to levels ($50/bbl in 2017) where hedging activity is ramping up which suggests it will soon stall."
In a word... "yes," VIX is too low based on the fundamentals underlying the economy, according to Goldman Sachs.
In recent days we have witnessed a massive outflow from virtually all holders of stocks. Just last week we reported that retail had just dumped the most stocks in the past 5 weeks since the August 2011 US downgrade...
... confirming a long-running trend observed with BofA smart money clients who, as we also reported last week, have sold stocks for 15 of the past 15 weeks, the longest selling stretch on record.
This has repeatedly prompted many to wonder who is buying.