Business

Roughly around the time the market troughed in early February, we asked "After The European Bank Bloodbath, Is Canada Next?" The reason for this question was simple: we said that "when compared to US banks' (artificially low) reserves for oil and gas exposure, Canadian banks are...not."

Stated otherwise, we warned that the biggest threat facing Canada's banking sector is how woefully underreserved it is to future oil and gas loan losses.

He does it again pic.twitter.com/VxemrcowNf

— zerohedge (@zerohedge) March 31, 2016

The market ended red today...

But The Dow and The S&P ended Q1 in the green after a yuuge drop...

In fact this was the greatest comeback in the history of stocks... (Q1 2016's 11.3% drawdown is the biggest on record for a quarter that ended green)

Back on December 31, the day which was the first quarter and year-end after the Fed's first rate hike cycle in nearly a decade, we pointed out something unexpected - the Fed's rate hike corridor had just been broken when the Fed Funds rate traded as low as 0.12%, far below the mandated minimum of 0.25%.

Back in November, when it was laying out its (five out of six wrong) Top Trades and predictions for 2016, Goldman strategists forecast that because the "US will be the first to grow GDP demand above potential" the stock market party would be over and that the "Bernanke Put" would be replaced with the "Yellen Call."

Specifically, this is what Goldman predicted:

Gold's 16.1% surge in Q1 2016 ias the best start to a year since 1974. Overall, this is the best quarter since Q3 1986 and is the best performing major commodity of the year.