In his latest note tited "The Calm before The Storm", Nomura's traditionally downcast Richard Koo is not too excited about the market's future prospects, in fact quite the opposite and makes the point that since QE was no game changer, not only is there no clear way out, but "the price for QE has yet to be paid."
What does that mean for risk assets:
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...