1) The next bear will be the most severe.
2) The core of the market never recovered from Q4, 18 selloff t.co/Z8zyJDxLxi— Anil (@anilvohra69) February 18, 2020
We live what is probably the most surprising bull market in history. Excess of demand-side policies, massive liquidity injections, and low rates have zombified the economy and driven debt to all-time highs, while the economic slowdown is evident.t.co/1GaZwuAOI1
— Daniel Lacalle (@dlacalle_IA) February 19, 2020
"I have never in my career seen anything as crazy as what’s going on right now." – @ScottMinerd
(h/t @DionRabouin)t.co/lpBh3NCoQo
— Carl Quintanilla (@carlquintanilla) February 18, 2020
#recession … China $USD #Liquidity #Squeeze edition#FX #RMB $CNY $USDCNY#PBOC forced to devalue the #Yuan even though it will make essential #imports (pork, soybeans, etc.) more expensive and despite virtually all #exports being shut down thanks to the #coronavirus… 👇 t.co/SQsuWugues
— Invariant Perspective (@InvariantPersp1) February 19, 2020
@CassFreight Jan shipment volumes dropped 9.4% vs 2019 as the index posted its lowest absolute reading in roughly 3 years, the steepest y/y decline since 2009. This follows sluggish end to 2019, where many blamed Dec’s weakness on holidays.
Clearly more than seasonals. pic.twitter.com/qJk8wpnl3N
— Danielle DiMartino Booth (@DiMartinoBooth) February 18, 2020
Maybe it needs $1.4tn comp to sound alarm bell: Apple warns that quarterly rev would fall short of $63-67bn guidance it gave few wks ago b/c of supply&demand shock in China. Ripple effects from coronavirus may become apparent, hit mkts in complacency mode. t.co/xMMP33c52G pic.twitter.com/3EwZfaFwuM
— Holger Zschaepitz (@Schuldensuehner) February 18, 2020
Seriously, the major bubble this time is in corporate credit: from IG to HY to CLO’s all of it. When there’s a recession that dam will burst and people will lose their ass in a flood of no bids. Recovery rates will be among the worst in history. But until the recession: party!
— GreekFire23 (@GreekFire23) February 19, 2020
Citi upgraded gold target to $1,700 in next 6-12 mo
— Olivia Voz (@TheVoz4Real) February 19, 2020
And the Concerns Continue: Yra Harris
The global financial system seems to be gearing up for massive actions by the global central banks in an effort to calm the potential headwinds that a deflationary fallout would force upon the world.
Long Term Repo Funds: Dress Rehearsal Before a Bigger Play?
Central banks in the developed world resorted to many actions, one after the other, to prevent another Great Depression.
Two Big Reasons to Worry About Stocks
…that good news masked a development that suggests Corporate America is beginning what could be a painful adjustment, and one that could put a damper on future stock returns.
Hong Kong Heads for First Back to Back Recessions on Record
Hong Kong is heading for its first back-to-back annual recessions on record, as the coronavirus shutdown cripples an economy already battered by months of political unrest. The jobless rate rose to 3.4% in January for a fourth straight month of increases.
Largest Shipping Decline Since 2009 and That’s Before Coronavirus
The January Cass Freight Shipping Index is more bad news for the global economy.
Options Traders Are So Bullish It’s Sending Warning Signals [Bloomberg]