Late last month, in what amounted to a tacit admission that nothing is working when it comes to pulling Japan out of its decades’ long stint in the deflationary doldrums, the BoJ adopted negative rates.
As we detailed previously, back on September 11, Zero Hedge predicted the events which unfolded in Paris last Friday (and the resulting aftermath) with uncanny accuracy. Specifically, we said that
Over the weekend, we presented a comprehensive step by step analysis laying out both the mechanics (and implications) of the Fed unleashing NIRP in the US when the time comes: a time which as JPM further defined, would be characterized by "recession-like conditions." In other words, right about now if Yellen so chose.
Over the past two years, Jeff Gundlach has been alternating between dispensing fire and brimstone, and doom and gloom. More importantly, he has also been right which explains why as his arch nemesis Pimco has been losing billions in AUM, Gundlach's DoubleLine has been getting bigger by the day.
Large cap financials have had an awful time in the last month and are 11.7% lower so far in 2016.
As ConvergEx's Nick Colas details, that’s worse than pretty much anything else, including all other S&P 500 sectors, the Russell 2000 small cap index, and even the MSCI Emerging Markets Index.