"There is an enormous amount of new retail money coming into the market"
"Here's what you do: Wait ten years until the end of the cycle, until the Fed is tightening, Wall Street is selling, and the economy is rolling over. Then go all in on record margin"
April 17th, Interactive Brokers Earnings Call
"average margin loans for the quarter reached a high of over $29 billion as our customers capitalize on our lower margin rates"
"Liquidity is the ultimate paradox in finanace. It’s always there when you don’t need it and never there when you need it most. The reason is crowd behavior, or what mathematicians call hypersynchronicity (a fancy word for everyone doing the same thing at the same time)...Right now, indications are that liquidity is growing scarce and it may be time to sell stocks and increase cash allocations"
Whereas hiding the subprime turd inside the mezzanine debt rose bush, was the dumbfuck idea of 2008, in this era, the meltdown trigger will be "dynamic hedging". Brought back to life circa 1987. What this fabricated term boils down to is taking asinine unhedged risks with other people's money under the make-believe auspice that algos can hit the exits ahead of everyone else. Despite the fact that everyone else believes the same thing.
It's hypersynchronized idiocy.
Speaking of which, deja vu of 2008, the freight train of deflation is bearing down on the hypersynchronized Idiocracy, because they're all looking in the wrong direction...
So that got me thinking, when was the last time that inflation concerns were ubiquitous? Let's take a look. It turns out it was precisely 10 years ago this month when serial fucktards were last concerned about Ponzi reflation. And yet, by the end of that same year, they quickly realized they got head faked:
What's behind the big commodities rally?
Record positioning for a big commodities rally. What else?
Never fear though, just as Trump imploded the Dow with trade wars, and Tech with blocked mergers, now he's going after oil:
Oil just moved back into contango for the first time since October, indicating the *resolved* glut is resuming.
In other words, artificially fabricated inflation will disappear instantaneously, limit down.
"Traders in the space see the rally continuing in the face of a trade war threat and as the market gets more comfortable with the global economic growth theme."
"...indications are that liquidity is growing scarce and it may be time to sell stocks and increase cash allocations"
FOMC policy meeting: