Markets sent a sign November 2019 when CLO’s started defaulting at 5% and the market reacted in December. The FED answered the market with a rate cut and opened up the repo market and started to buy up CLO’s. The CLO defaults are up to 20%+.

by shanish82 Check graph on page 53 Sources: https://www.federalreserve.gov/publications/files/financial-stability-report-20200515.pdf Go to pages 50-53. Also https://www.propublica.org/article/whistleblower-wall-street-has-engaged-in-widespread-manipulation-of-mortgage-funds  

Overpriced Stocks May Be Bubble Ready to Pop

From Birch Gold Group Even if local and state governments hadn’t shut down businesses in attempts to mitigate the coronavirus, the U.S. economy was still set up to take on a number of economic challenges. But now, there’s one additional challenge being considered by billionaire David Tepper: …

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European Bear Market Rallies Peaking Here?

by Kimble Charting Are bear market rallies peaking in Europe? Very possible! This 3-pack looks at stock indices from Germany (DAX), France (CAC-40), and London (FTSE-100). Each index declined more than 20% from highs earlier this year, reflecting that each entered into bear markets. Each …

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Did congress authorize this? The Fed says its programs only lend to investment grade companies, but by buying high yield bond ETFs like $HYG they indirectly buy very junk and even bankrupt names

https://twitter.com/apark_/status/1261054164076986369 In today's Fed release they started reporting on the "Corporate Credit Facility LLC" vehicle they created to "support credit to employers." How do they plan to do that? By buying up corporate bonds on the primary/secondary market, including ETFs. …

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Citigroup’s “US equity strategists’ panic/euphoria model is approaching euphoria, which, historically, has led to negative returns over the next 12 months.”

Citigroup's "US equity strategists’ panic/euphoria model is approaching euphoria, which, historically, has led to negative returns over the next 12 months." pic.twitter.com/y4AaS3dEJE — Lisa Abramowicz (@lisaabramowicz1) May 14, 2020 Bigger picture ..this market has been sideways since 9 April It …

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EURUSD – Major forces about to be unleashed! When current correction (abcde) finalizes – which will happen soon – the coming crash will send shock waves through global economy.

#EURUSD Major forces about to be unleashed! When current correction (abcde) finalizes – which will happen soon – the coming crash will send shock waves through global economy. Fast decline to ~0.98 and later this year further decline to target …

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