Monday, June 6, 2016

All Ponzi Schemes Collapse Suddenly And Violently

This one will be no exception...

These are the two most crowded trades on the planet, this side of 3x leveraged oil: JPY Carry trade (red) versus Dumb Beta. 

The carry trade is unwinding. While the risk trade is going ALL IN on dumb beta, amid collapsing payrolls. What else?

Currency is the trigger

3x leveraged oil is the accelerant...

Volatility is coiled to explode:
UVXY (2x leveraged volatility) SHORT volume

And global poverty/deflation is the fuse driving yields ever lower...

ZH: June 6, 2016
Developed World Bond Yields Plunge To Record Lows