The Fed Sends A Frightening Letter To JPMorgan, Corporate Media Yawns
Submitted by Pam Martens and Russ Martens via WallStreetOnParade.com,
Submitted by Pam Martens and Russ Martens via WallStreetOnParade.com,
There has been some confusion in recent weeks about one unexplained aspect of the rising market: just who is buying?
The reason for the confusion is not only the previously documented buyer strike by the smart money (hedge funds, institutions and private clients), which as we reported a few days have sold stocks for 11 consecutive weeks.
Then last night, citing the latest EPFR data, BofA reported that retail equity investors are now also "risk-off" following $6.2 billion in equity outflows from all regions.
There has been some muted cheering at the Fed (and the Obama administration) when as a result of numerous statewide minimum wage hikes, average hourly earnings finally started to rise in early 2016, recently hitting a 2% annual increase, even if on a weekly basis they dropped to post-recession lows as the number of hours worked actually dropped confirming the decline in US output continues.
Good news is still bad news after all.
After last night's China 6.7% GDP print which while the lowest since Q1 2009, was in line with expectations, coupled with beats in IP, Fixed Asset Investment and Retail Sales (on the back of $1 trillion in total financing in Q1)...