Crude Oil has been strong of late. Did you realize that Crude Oil has gained more in the past month than the S&P 500 has this year, see chart below.
CLICK ON CHART TO ENLARGE
The strong rally of late has Crude testing what appears to be a very important level in the chart below-
The divergence between the 'hope' melt-up in stock markets and the 'nope' collapse of the US Treasury yield curve has never been so wide... and has never engendered so many excuses by commission-takers and asset-gatherers for why the latter is wrong and the former correct.
Last week, the financial world was shaken when billionaire Robert Mercer, co-CEO of RenTec which is arguably the world's most profitable and secretive hedge fund, announced he was quitting on Jan 1, 2018.
Let’s talk about Junk Bonds.
Junk Bonds are corporate debt issued by companies that have a significant chance of defaulting (meaning they don’t pay you back).
Why would anyone want to lend these companies money?
Because these bonds are risky, they typically pay very large yields to compensate for the increased risk. Think yields of 8% or even 10%.
Authored by David Stockman via Contra Corner blog,
The black swan in plain sight does emit the Donald's orangish glow, but at the end of the day its true color is actually red.