Business

What happens next?

Well it's been another week... As Goldman said this was the 4th most dovish Fed surprise since 2008

While "most shorted" stocks have ripped higher in the last few weeks, and "weak balance sheet" stocks have soared, the real winner in this "dash for trash" is... garbage!!

It appears investors can't get enough of "Waste & Disposal" stocks...

h/t @jlyonsfundmgmnt

The last time this index surged so far so fast was Oct 2011... and it fell 13% in the following month.

As it becomes ever more clear that ZIRP and NIRP are not only entirely inadequate when it comes to reviving global growth and trade, but in fact may be counterproductive for a number of reasons, the world is looking for other answers.

One week ago we showed something the oil bulls did not expect: oil producer hedging had started. 

As a trader cited by Reuters said "Brent's flattening contango since January comes as many producers want to cash in immediately on recent price rises. They've been heavily selling 2017/2018 and beyond, and it shows that they don't quite trust the higher spot prices yet."

It's all starting to fall apart for Japan, whose "lost decade" now appears as though it may turn into a "lost forever" and that's if QQE doesn't dead end in "failed state" status in 2018. 

A rebound in inflation is nowhere in sight (even when Japan attempts to game the numbers by removing components where prices are declining) and as we saw last month, the "devalue our way to prosperity" idea isn't working out so well as trade is collapsing in the face of the global currency wars. Wage growth is of course a complete joke as we've outlined on too many occasions to count.