For anyone who managed to avoid Goldman's "can't miss" recommendation and get short the EURUSD two weeks ago ahead of the ECB's stunning disappointment which sent the pair soaring and crushing virtually every macro hedge fund and FX trader, Goldman's Asset Management group has another recommendation just for you.
In case the fine print is a little too small, here it is in normal font:
High Yield & Bank Loans: We have increased our overweight in high yield.
Why?
Just as we warned, the collapse of the high-yield market has spread contagiously to the investment grade market as selling begets selling and redemptions need to be met from what you can sell, not what you need to sell (but can't). LQD (the investment-grade bond ETF) is getting hammered today, breaking to its lowest in almost 2 years.
As Europe closed, HYG managed to stabilize but the selling accelerated in LQD (the investment-grade bond ETF)...
Cracking LQD below recent lows to 2-year lows...
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
Consider this chart of the gold-oil ratio.
By all accounts, the world is awash with oil: production remains high while demand is softening along with the global economy. This has led many observers to forecast further declines in oil from the current price (in USD) of around $35/barrel.
This Is Why $20 Oil Is A Possibility (Zero Hedge)
By EconMatters
10 Year Lows
From Janet Yellen's February 27, 2014 Testimony before the US Senate Committee: