Authored by Lance Roberts via RealInvestmentAdvice.com,
First, it was Hurricane “Harvey” and an expected $180 billion in damages to the Texas coastline. Now, “Irma” is speeding her way to the Florida coastline dragging “Jose” in her wake. Those two hurricanes, depending on where they land will send damages higher by another $100 billion or more in the weeks ahead.
In his latest "flow report", BofA's Michael Hartnett looks at the "Disconnect Myth" between rising stocks and bonds and summarizes succinctly that there is "no disconnect between stocks & bonds."
Catastrophic storms, worst week for macro data since July, debt ceiling to be cancelled, Gary Cohn off the list for Fed Chair (amid resignation chatter) and Korean hydrogen bombs... gold spikes, dollar dumps, bond yields plunge, and... stocks limp less than 1% lower...
While there were few surprises on the surface of today's latest monthly Federal Reserve consumer credit report, which showed that in July total consumer credit increased by $18.5 billion, more than the $15.0 billion expected, on the back of a $2.6 billion increase in revolving credit coupled with $15.9 billion in non-revolving credit...
In a new downgrade of subprime lenders Capital One and Synchrony, Morgan Stanley sought to answer the nagging question of why subprime credit card losses are suddenly soaring, per the chart below, "if employment is so good."