Friday, December 9, 2016

Hot Money And Crashes. 100% Success Rate

Divergent Monetary policy is the primary driver behind market crashes...

"We're decoupled from Globalization"

Dow versus Rest of the World:

Global Financials are massively leveraged to U.S. interest rates via the dollar-based carry trades. Which is why every time U.S. rates roll over, the market crashes shortly thereafter...

Global Financials (black) with 1 Year Treasury (red):

Also confirmed by this chart:

Regional banks

The last Fed meeting drove this entire rally in anticipation of this Wednesday's rate hike, albeit with some help from Forrest Trump handing the U.S. government over to the Koch Brothers and Goldman Sachs to run...

Rates with financials:

Hot money flowed into the U.S from across the world:

USDJPY with U.S. banks:

The USDJPY carry trade and short-term rates rolled over on December 9th last year, the week prior to the Fed meeting, coincidentally of course:

Which means that rates are due to roll over any minute now...

Along with Financials, carry trades, and...

The average U.S. stock: