One can finally put all references to "cash on the sidelines" in the trash can, not only for purely logistical reasons (when someone buys a stock, the seller ends up with the cash), but also from a purely cash allocation basis.
Central Bankers are absolutely terrified.
In the last month, both Fed President Janet Yellen and ECB President Mario Draghi have issued somewhat hawkish statements, only to turn around within 48 hours and walk back their comments.
Again, two of the most powerful Central Bankers in the world couldn’t even last three days being hawks.
First was ECB President Mario Draghi, with claims that the ECB was considering gradually removing its stimulus programs.
European markets dived in response to this.
For more than 20 years, the German auto industry has been operating like a cartel, according to a new "bombshell" report, which has sent the shares of Germany's biggest automakers reeling.
Back in May, we pointed out an interesting observation made by Goldman: unlike late 2015 and most of 2016, when equities demonstrated surprising resilience to the swoon in oil prices, in 2017 OPEC's failure to stabilize oil prices finally hit energy equities disproportionately. As Goldman said in mid-May, discussing the latest crude oil selloff, which has been "even more pronounced for longer-dated contracts reflecting increasing concerns over future balances in 2018 and beyond"...
Authored by Kevin Muir via The Macro Tourist,