The all-knowing denialist three point stance:
The Dow scored a bearish engulfing key reversal today on non-existent liquidity (not shown). Overnight risk is "High"...
"But you said the end of Globalization was a buying opportunity"
Three limit down crashes ignored in 18 months, each coming closer than the last...
Financials with JPY:
And on the risk parity side, today bonds and stocks both fell at the same time, which portends badly for risk parity strategies:
"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"
"Head of Global Rates and Currencies has been pounding on the table that the potential for fiscal stimulus following the U.S. election — particularly if Donald Trump is elected — poses a huge threat to risk parity portfolios...To us, the focus on risk parity unwinds is here to stay even beyond the next couple of weeks."
Realized Risk #3: China quantitative tightening