Authored by Charles Hugh Smith via OfTwoMinds blog,
The general view in inflation is dead, essentially forever. Maybe. Maybe not.
We all know real-world inflation for big-ticket expenses is far above the official rate of around 2% annually.
Yet conventional economists are virtually unanimous that deflation is the danger and inflation is a "good thing" we need to spur so servicing existing debt becomes easier for debtors.
The first time JPMorgan warned of market downside was in early March when the bank's US equity strategist Dubravko Lakos-Bujas wrote that while the fundamental backdrop remains supporting, the "short-term downside risk" in the S&P is increasing. Less than two months later, JPM presented six "red flags" why it is starting to sell stocks.
Authored by Daniel Ruiz via Blinders Off blog,
On May 10, 2017, there were 145,763 new 2016 vehicles unsold.
Today, 2016 new car inventory stands at 112,310.
At the current rate of sale, we will not sell through the new 2016 inventory till the last week of August.
Why this matters
Dealers always focus on selling their oldest vehicles first. This is because the majority of dealers floor plan their inventory.
So... we have another terror attack in London, the biggest geopolitical earthqwuake in the Middle East in years, US macro data is dreadful... and stocks don't budge...
The Russell 2000 Index posted a 2.2% decline in May, its worst month since October, and it appears a large swath of investors is now betting it has further to fall.
As Bloomberg notes, hedge funds and other major speculators have a combined net short position of 73,030 contracts in the small-cap index’s futures, according to the latest data from the Commodity Futures Trading Commission.