The U.S. Versus The Rest of the World

The entire world is RISK OFF while U.S. gamblers hide in 4x overvalued recession stocks. I mean "smart beta"...

This entire charade comes down to U.S. large cap stocks versus...the entire rest of world stock markets (below), Treasuries, gold, copper, global growth, corporate profits, deflation, carry trades, China, global trade, U.S. macro, Global macro, stop me any time...

Because it's always a good time to buy "stocks"...

The max pain trade overnight was the USDJPY weakening close to multi-year lows AND China Yuan devaluation also back to multi-year lows. All of which means that Yen/Yuan carry traders were double decimated:

Global bond yields collapsed further, with the German 10 year hovering at levels that bond gurus (Gundlach/Gross) called "the short of a lifetime"...

In other words, German 10 year bonds yielding 0% have become the latest momentum trade. What could go wrong?

Price (red). Yield (black)

What could go wrong visualized:

European Stocks with German 10 year...

Agriculture commodities are staging a late cycle catch-up rally...if that's what you want to call it:

Also overnight, Apple iPhone sales are set to fall -8.6% in 2016:

And MonopolySoft just overpaid 50% for LinkedIN, so they can go out of business at a slightly slower pace:

Internet stocks:

Microshaft got monkey hammered on the news, because we know how bullish this is...