Buy The Fucking Fire And Fury...
Interrestingly the BTFDers arrived right on cue as Europe closed and then got some ignition when NYT ran a story saying Trump's words were his own and not 'policy'... Then again into the close, VIX was smashed lower in a desperate bid to get S&P green...
Dow down for a 2nd straight day!!!!
Authored by Simon Black via SovereignMan.com,
What’s money worth if interest rates are negative?
Interest rates, after all, are the “price” of money.
When we borrow money from a bank and pay interest on the loan, it means that the money we’re borrowing has value. That –capital- has value.
Negative interest rates, on the other hand, suggest that capital is totally worthless.
This isn’t a philosophical exercise. These are the times we’re living in.
Not only are short volatility bets at their peak...
The number of VIX futures contracts outstanding has never been higher...
As Bloomberg notes, the gauge of U.S. stock turbulence has more than 660,000 contracts outstanding, surpassing every previous high.
While the measure is heading for a second day of gains, its slump this year has led to a surge of bets on where volatility will go.
One day after DoubleLine chief Jeff Gundlach told Bloomberg TV that it is time for investors to head for the exits as his highest conviction trade is "volatility is about to go up", and that he is reducing his positions in junk bonds, EM debt and other lower-quality investments on fears investor sentiment may roll over (explaining later to CNBC that he expects to make no less than 400% on his S&P puts) today two other money-managing titans - T.Rowe Price and Pimco - both issued similar warnings to investors, urging investors to start taking profits.
Buy The Fucking Fire And Fury (BTFFF)