There was a brief period of sober rationality during the current central bank-facilitated, market reflation phase, when Private Equity shops decided they had no desire to chase artificially inflated valuations, especially since their currency - cash - did not benefit in the same was a strategic acquirors did, whose own stock had increased alongside that of the target company.
Originally published The Birch Gold Group, via Alt-Market.com,
As stocks continue to climb and the U.S. economy sustains its third longest period of expansion in history, market forecasters are seeking clues for when our next crisis may strike. So far, three uncommon signals have them worried.
Here’s an explanation of the three uncommon signs causing alarm, and what they mean for your savings…
Sign #1: Resurgence of Synthetic CDOs
While the world desperately tries to shrug off the implications of Catalonia's independence vote (and Rajoy's warnings of potential reactions), investors are rapidly exiting positions in Spanish stocks and bonds...
IBEX (the main Spanish stock index) just plunged to its lowest level since March (as European stocks - Stoxx 600 - hits a 4-mointh high)...
And Spanish sovereign bonds are getting clobbered...
Yesterday, DoubleLine's Jeff Gundlach, who correctly predicted the election of Donald Trump, unveiled a new surprise forecast: Neel Kashkari would be the next chairman of the Federal Reserve. Speaking Tuesday at a Vanity Fair summit in Los Angeles, Gundlach said Kashkari, president of the Minneapolis Fed, was a strong advocate of easy money.
With the race for the next Fed chair in its final stretch as Trump is now expected to make his decision over the next few weeks, and following recent reports from Bloomberg, Politico and the WSJ, the three frontrunners to replace Yellen, according to PredictIt, are Kevin Warsh, Jerome Powell, Gary Cohn and unexpectedly, Neel Kashkari, following yesterday's endorsement by Jeff Gundlach...
... Bank of America has put together a handly cheat sheet laying out a summary of the major views by the 4 key contenders.