Authored by Saeculum Research's Neil Howe, via MauldinEconomics.com,
The two firms are aggressively scaling up and branching out: Who will rise as the rest of retail sinks?
With the VIX soaring, from single digits yesterday to over 15, risk is suddenly breaking out above the crucial Kolanovic redline level...
And Nasdaq is tumbling.
... it is worth reminding readers just how coiled the short-vol sector is, something we described two weeks ago in "If The VIX Goes Bananas" This Is What It Will Look Like" and in which a Morgan Stanley trader detailed how a devastating short vol unwind might develop:
European and Asian market and S&P futures have resumed their slide, as geopolitical tensions between North Korea and the U.S. spiked again overnight after Pyongyang responded to the latest set of warnings by Trump, revealing a plan to fire 4 ballistic missiles at Guam by mid-August. Gold gains for a third day while Brent rose above $53.
Fundstrat Global Advisors analyst and former permabull - who recently became into one of Wall Street's biggest bears - Tom Lee, is a fan of bitcoin. The strategist, who recently turned "cautious on stocks", explained his bullish view on the digital currency during an appearance Wednesday on CNBC’s “Fast Money,” claiming that a single coin could someday be worth as much as $50,000.
Now that the possibility of a war between the US and North Korea seems just one harshly worded tweet away, and the window of opportunity for a diplomatic solution, as well as for the US stopping Kim Jong-Un from obtaining a nuclear-armed ICBM closing fast, analysts have started to analyze President Trump’s military options, what a war between the US and North Korea would look like, and what the global economic consequences would be.