Europe

Having pointed out the gathering storm in VIX ETPs, raised concerns of a "reasonably high probability" of a large drop in stocks, and explained how complacently short-term risk is being priced, Goldman's portfolio strategy team have unleashed a dramatic warning. Shifting to an oveweight cash position for the next 3 months, Goldman warns "we downgrade equities to Neutral over 12 months on growth and valuation concerns. Until we see sustained earnings growth, equities do not look attractive, especially on a risk-adjusted basis."

Submitted by StraightLineLogic.com's Robert Gore via The Burning Platform blog,

Economic depressions unfold slowly, which obscures their analysis, although they are simple to understand. Governments and central banks turn recessions into depressions, which are preceded by unsustainable expansions of debt untethered from the real economy. The reduction and resolution of excess debt takes time, and governments and central banks usually act counterproductively, retarding necessary adjustments and lengthening the adjustment, and consequently, the depression.

BREXIT the movie is a feature-length documentary film which hopes to inspire as many people as possible to vote to LEAVE the EU in the June 23rd referendum. Is it safe to give a remote government beyond our control the power to make laws? Is it safe to tie ourselves to countries which are close to financial ruin, drifting towards scary political extremism, and suffering long-term, self-inflicted economic decline?

Submitted by Jeffrey Snider via Alhambra Investment Partners,

As Goldman famously declared on Sunday night when it boosted its near-term oil prices targets (while cutting its 2017 estimates as a result of what it admits will be a delayed rebalancing of the oil market), the biggest upside risk to oil over the next months remains the threat from unexpected supply disruptions...