Let's be really clear about this. Wall Street isn't a thing. There is only central bank liquidity feeding an ecosystem of computers. All we can conclude from the ""market"" is that central banks are pouring massive amounts of thin-air money into them. Everything else is noise https://t.co/CUVeCj5nYT
— PeakProsperity.com – Fed goes Brrrrrrr (@chrismartenson) November 5, 2020
Markets are betting on just one thing: More monetary expansion regardless of whatever happens.
Central banks cannot tolerate falling asset prices which leads to excessive risk taking incentivised by financial repression which in turn leads to more financial repression. pic.twitter.com/Dk9vJ9CFel
— Daniel Lacalle (@dlacalle_IA) November 5, 2020
The only other time in history when speculators were this long the S&P 500 vs. 30Y USTs was Dec ‘08.
Back then, equities were trading at valuations 70% lower than now.
Today, equities are barely off their most expensive lvls on record (1.7X GDP) w/ very one-sided positioning. pic.twitter.com/43xLPvxPtR
— Julien Bittel, CFA (@BittelJulien) November 5, 2020
#recession … #Tech #Bubble 2.0 edition#NASDAQ $NDX $QQQ #NQ_F 📉 https://t.co/kf1aUdsPwb
— Invariant Perspective (@InvariantPersp1) November 5, 2020
U.S. Dollar optimism index's 100 day average is at its lowest level in more than 10 years.
There's a strong risk that the USD could rally from here.
Given the inverse correlation between the dollar & stocks, this is as a major risk for U.S. stocks pic.twitter.com/9FB6LWMwzb
— SentimenTrader (@sentimentrader) November 4, 2020
#recession … #Global $USD #Liquidity #Squeeze edition
The return of #Repo madness? $TLT 📈 https://t.co/1VNQLV7ROB
— Invariant Perspective (@InvariantPersp1) November 5, 2020