Business

We have been warning about significant divergences between equity prices and other asset classes for a few weeks (most notably the decoupling from equity risk and credit risk, junk bonds), but as BofA notes its not just these assets that are breaking away from soaring Nasdaq levels, in fact many of the rally's leaders are crashing... in a way we have not seen recently.

High yield risk has suddenly decoupled from equity markets...

Authored by Charles Hugh Smith via OfTwoMinds blog,

The likelihood that either party will ever drain the fetid swamp of corruption that is our tax code is zero, because it's far too profitable for politicos to operate their auction for tax favors.

To understand the U.S. tax code and the endless charade of tax reform, we have to start with four distasteful realities:

Authored by Sven Henrich via NorthmanTrader.com,

I can’t help shake this sinking feeling: This tax cut package that is being peddled by the current administration is a scam. Why? Because the entire narrative is dishonest and predicated on false, make belief premises.

• Trump Declares New World-Trade Order (WSJ)
• Trump brings tough trade message in vision for Asia (Reuters)
• Trump Offers Trade to Asian Nations But Only If They Play Fair (BBG)
• Flynn Probed Over Alleged Plan to Send Back Turkish Cleric (WSJ)
• GOP’s Dueling Tax Overhauls Struggle to Pass a Key Red Ink Test (BBG)
• Trump's CNN attacks may hobble legal case to block AT&T-Time Warner deal (Reuters)
• Bigger Than Black Friday, Alibaba’s ‘Singles Day’ Faces Fatigue in China (WSJ)

That was quick.