Investor sentiment is at historic pessimism.
Worse than MARCH 2020.
Worse than DECEMBER 2018.
Even in 2008 – similar spikes led to violent Bear Market rallies.
And lastly – when investors finally got this negative, the 2000-2002 Tech Crash was *over*. pic.twitter.com/o1fhONVIHC
— Macro Charts (@MacroCharts) January 27, 2022
🇺🇸 Default Risks Surge Most Since 2020 as #Fed Plans Tighter Stance – Bloomberg
*Link: https://t.co/vk0XViOrJa pic.twitter.com/nxwfQAqvjM— Christophe Barraud🛢 (@C_Barraud) January 27, 2022
Central banks seem to be caught between a rock and a hard place when deciding between curbing inflation and keeping states' financing costs low. pic.twitter.com/LR4sMgpgSf
— Daniel Lacalle (@dlacalle_IA) January 27, 2022
The #Fed is trying to do something impossible—not shock the market while being an aggressive #inflation fighter.
— Scott Minerd (@ScottMinerd) January 26, 2022
As markets continue to drop, many ask about the flow.
This is the longest streak of bearish flow on $SPY since the covid crash.
People are consistently buying puts on the $SPY, large whales with larger orders. Incredibly high P/C ratios.
Bears winning.https://t.co/LTLDapbuRN pic.twitter.com/jeij5HAm7C
— unusual_whales (@unusual_whales) January 27, 2022
The Federal Reserve uses rate hikes to tamp down US inflation, often creating a recession in the process. This time is different. It could inadvertently create an emerging market debt crisis. Global institutions might not be able to stop the contagion. https://t.co/mdunvJv7X6
— Lyric Hughes Hale (@lyrichues) January 24, 2022
The old 60/40 investment rule made sense when inflation was persistently low. Now that it's rising, investors will need to reconsider their hedging strategies, notes @Nouriel. https://t.co/qWp1CuiBFD
— Project Syndicate (@ProSyn) January 26, 2022
#recession … #GFC2 US #Consumer edition https://t.co/mUV5vT1Hjn
— Invariant Perspective (@InvariantPersp1) January 27, 2022
USD 📈#Quad4 https://t.co/8M2qFqXhCy
— Hedgeye (@Hedgeye) January 27, 2022
#recession … #StockMarket #Bubble edition
Looks like even consumer staples aren't holding up, either… maybe it's the rising #BigMac Index? https://t.co/dTpMEtLrum pic.twitter.com/JXH868v2Ou
— Invariant Perspective (@InvariantPersp1) January 27, 2022
Brent oil hits a fresh a seven-year high near $91 a barrel ⬆️https://t.co/yNjwPsvti8#OOTT pic.twitter.com/q0EiBzqyKm
— Helen Robertson (@HelenCRobertson) January 27, 2022
By not tightening and ending QE immediately, nor providing a true dovish twist, the #federalreserve has left the door wide open for markets to test its resilience. #Powell left it up to the markets what to do next. And markets only want one thing: MORE #LIQUIDITY! pic.twitter.com/fJGBMky3QP
— jeroen blokland (@jsblokland) January 27, 2022
#RUSSIA Gold Reserves pic.twitter.com/0LoUiJQfHS
— Benjamin Deutsch (@TradingForPro) January 27, 2022