Fastest correction in S&P history: correction we have seen in stock market over past 6 trading sessions is fastest 10% decline in S&P500 from a record high, DB says. Speed of the decline over the past week even beats Black Monday episode in Oct1987, where the peak was in Aug1987. pic.twitter.com/Y1SLjnaHkk
— Holger Zschaepitz (@Schuldensuehner) February 27, 2020
Junk bond yields are rising more rapidly than Treasury yields are falling. Even investment grade corporate bond yields rising lately. Higher borrowing costs fatal to share buybacks.
— Jeffrey Gundlach (@TruthGundlach) February 28, 2020
In 2009 the US eased mark-to-market accounting to help banks weather the financial crisis.
Now, China is taking the extraordinary step of delaying recognition of bad loans to help its banks. https://t.co/xDCUblFjEM
— Tracy Alloway (@tracyalloway) February 27, 2020
To sum it up:
8 out of 11 sectors are at record valuations.
Unparalleled to anything we’ve seen in the last 30+ years.
A mere mean reversion would be brutal today. pic.twitter.com/9lnH9KUhgM
— Otavio (Tavi) Costa (@TaviCosta) February 27, 2020
It's amusing the world is now universally critical of #China manipulating its various official data but seem to somehow forget that China's official PMI is also official data https://t.co/UMasf1gt2U
— China Beige Book (@ChinaBeigeBook) February 27, 2020
Maybe. Here's the point: The 2008 panic started in the spring of 2007 with HSBC earnings. The 1998 panic started in the spring of 1997 with a Thai devaluation. These things can take a year to spread and enlarge. So, the full impact may not be felt until 2021. A slow-mo avalanche. https://t.co/jx0jTblZsR
— Jim Rickards (@JamesGRickards) February 27, 2020