Tuesday, September 27, 2016

At The Precipice of Imploding Bullshit

"So we’re now on the precipice of having a potentially much better economy"

"Oil prices could quickly dive to $40 or lower if OPEC members leave Algeria without any promise of a deal."

“State aid won’t happen”

Deutsche Lehman

Got volume?

Investors considering the Bank of Japan’s latest policy maneuvers, unveiled last week, can be forgiven for shrugging their shoulders and reverting to what they know: If you’re worried or confused, buy the yen.

USDJPY is sitting right at 100. For three months...


Risk Parity

BBG: Sept. 15, 2016
Forced Selling From Risk Parity Funds Risks Bond Implosion
The ability of risk parity strategies — which typically rely on bonds moving in the opposite direction of stocks in order to appropriately diversify risk across the portfolio — to withstand the potential end of a multi-decade bull run in debt and simultaneous slump in equities has become a hot topic over the past year. The debate has been revived in recent months as analysts and investors fret over the ability of such systematic strategies to exacerbate swings in the market and worsen losses.

ZH: Sept. 27, 2016
Bond Stock Correlation Reaches Record High

Risk Parity Fund Rate of Change:

As long as Amazon doesn't roll over this will all be fine...