Having correctly foreseen in September that "China's devaluations are not over yet" it appears Nomura's infamous 'bear' Bob Janjuah has also nailed The Fed's subsequent actions (hiking rates into a fundamentally weakening economy in a desperate bid to "convince markets that strong growth and inflation are on their way back").
You know it's bad when...
THERE IT IS 7pm ET pic.twitter.com/ufjczF1cYY
— Ivan the K™ ? (@IvanTheK) January 7, 2016
But, but, but... Fed... FANGs... Decoupled... Services... Netflix... Unicorns... Cramer...
China will suspend the newly implemented circuit breaker rules for the Shenzhen and Shanghai stock exchanges that came into place this week, as of Friday. On Thursday the circuit-breaker system kicked it when the index fell by 7 percent within minutes of the bourse opening. Share Cast reports: The new circuit breakers, which kicked in on Monday, have been criticised by analysts for exaggerating declines as investors rush to exit positions before getting locked in by the halts. Market participants said the move was good news as it removed the element of fear from trading.
Two months ago, we revealed the list of stocks most hated by the buy-side: that increasingly clueless cabal of Hotel California groupies which, unable to do fundamental analysis (thanks to the Fed) is forced into the same trades and then, when a paradigm shift strikes (as happened ever so frequently over the past year) is crushed under their own and their peers' weight leading to the worst hedge fund performance year since 2008. We said to go long these names in advance of hedge fund liquidations and collateral and margin calls.
Earlier today we reported that when it comes to Saudi Arabia, things are going from bad to abysmal, with the market is clearly aware of it. Saudi riyal forwards hit their highest level in almost two decades as oil plummeted: twelve-month forward contracts for the riyal climbed 260 points, and set for the steepest close since December 1996 on growing speculation the world’s biggest oil exporter may allow its currency to slide against the dollar for the first time since 1986 (incidentally, Bank of America's "Number One Black Swan Event For The Global Oil Market In 2016").