Authored by Nick Cunningham via OilPrice.com,
One of the key objectives for OPEC is to bring down inventories, a goal that has been elusive this year. But if the oil futures curve is anything to go by, the oil market is showing signs of tightening.
The Fed confirmed yesterday that stocks are in a bubble.
Lost amidst the usual Fed-speak about inflation and other items were the following nuggets.
1) “Equities” (read: stocks) were the primary reason the Fed discussed financial stability risks.
2) The Fed raised its assessment of financial stability from “notable” to “elevated.”
3) The Fed discussed “stock valuations.”
This is simply incredible. Remember, we're talking about the Fed here... a group of people who go above and beyond to ignore risks in order to maintain the status quo.
Before yesterday's brief curfuffle, markets remained entirely care-free; climbing walls of worry, shrugging off every and any potential pitfall (from the collapse of American retail to global armaggedon) as new high after new high, on an ever-decreasing base of mega-cap stocks had become ubiquitous. Like many rational investors looking asconce at this 'market', former fund manager Richard Breslow wants to know "why are equities bid?" ... and he has an answer...
Via Bloomberg,
The market value of bonds yielding less than zero percent has jumped by a quarter over the past month to $8.68 trillion, the highest since October... which is odd given the mainstream narrative that everything is awesome and global growth is heading for escape velocity?
"probably nothing"
As Bloomberg notes, slower-than-forecast inflation data and haven demand on geopolitical risk have revived bond bulls around the world.
Authored by Kevin Muir via The Macro Tourist blog,
Yesterday, a few different readers emailed to ask my opinion about the European Junk Bond versus US Treasury yield chart that Tiho Brkan from The Atlas Investor Blog recently published.