In my opinion, this is the single most important driver in the risk off camp, for now. The negative yield environment was feeding on itself. It was fomenting both fear and greed amongst equity and bond traders. In an amazing move today, bunds got decimated and yields went from -0.13% to -0.03%. The way markets are moving now, with forex and commodities all cooperating and such, I would expect bunds to claw out of the deflationary vortex by tomorrow.
This, of course, will lead to another joyous rally, one filled with popping champagne corks and crazy people getting tattoos of the Wall Street bull on their arms.
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Just to let you know I do believe I spotted couple of Pokeman Jigglypuffs this PM when I stopped inside a 7-11 for a drink. In front of me were a couple of rather obese folks buying Ding Dongs, Suzie Q’s, and giant slurpees,
I wasn’t sure if I was supposed to yell out “Jigglypuffs” or something because I don’t know how to play the game.