Business

This is the email that David Little, Chairman and CEO of Houston-based DXP Enterprises sent to his employees to explain why, "due to bank obligations and to continue a positive cash flow profile" the company has to freeze 401(k), why it is cutting pay in some cases as much as 60% and  why many employees are about to lose their jobs in the middle of what is an "oil and gas depression." It is a disturbing read.

Dear DXPeople,

 

And the revelations just keep on coming.

One day after the St. Louis Fed spent thousands in taxpayer funds to "discover" that, gasp, "consumers across the country are borrowing more to buy cars and go to school", yes really...

Consumers across the country are borrowing more to buy cars and go to school https://t.co/mkKAoVya2o pic.twitter.com/DxMiHo7kki

Submitted by Lance Roberts via RealInvestmentAdvice.com,

“The Bear Market Is Dead, Long Live The Bull.” 

You could almost hear the chants from the always bullish biased media this week as the markets ripped higher on “first day of the month” portfolio rebalancing and short-covering by fund managers.

The rally, as discussed this past weekend, was not unexpected:

They are pulling out all the stops on this one...

Another chaotically wild week...

Today marked the 13th consecutive day of positive HY fund flows (bringing total to $8.6bn)...

But as Credit Suisse explains, the nature of this demand is 'different'...

Investors likely using the ETFs as a placeholder for cash in the absence of new supply, with HY issuance down ~74% year on year.

 

With ballooning ETF inflows the past few weeks, the liquid sector has become increasingly vulnerable to ETF cash rotating out upon the availability of new supply.