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The World's Biggest Bubbles

The World's Biggest Bubbles

We recently discussed (see here) Alberto Gallo’s (portfolio manager of Algebris Macro Credit Fund) shot at the $64,000 (more like trillion) question in his report “The Central Bank Bubble: How Will It Burst?”.

As we said at the time, one of our favourite parts of the report was “The Money Tree” infographic which explains how QE has benefited a plethora of investment strategies and created the bubble to end all bubbles.

Saudi CDS Spikes, Currency Crumbles But Stock Market Miracles Abound

Saudi CDS Spikes, Currency Crumbles But Stock Market Miracles Abound

In the few short days since Saudi Arabia erupted in a 'pre-emptive coup', the nation's credit risk has spiked dramatically higher, bets on a devaluation of the Riyal have surged, oil has jumped, and the Tadawul All-Share Index is... unch.

Saudi Credit Risk has spiked...The cost of insuring exposure to the country’s debt against default has spiked the most in seven months in the two days since it arrested dozens of princes, billionaires and public officials as part of an anti corruption drive

 

Mauldin: The Next Crisis Will Reveal How Little Liquidity There Is

Authored by John Mauldin via MauldinEconomics.com,

This is something I’ve been pondering for some time. I think the next crisis will reveal how little liquidity there is in the credit markets, especially in the high-yield, lower-rated space.

Dodd–Frank has greatly limited the ability of banks to provide market-making opportunities and credit markets, a function that has been in their wheelhouse for well over a century.

Momentum Hasn't Been This Extreme Since The Peak Of The Dot.Com Bubble

Momentum Hasn't Been This Extreme Since The Peak Of The Dot.Com Bubble

The last month or so has seen 'momentum' dramatically outperform the market as retail flows chase 'what is working'...

In fact this has very much been a year of momo...

 

But, as Bloomberg notes, U.S. stocks with the fastest-rising prices are showing the kind of strength they did in the 1990s, according to Jonathan Krinsky, chief market technician at MKM Partners LLC.

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