Let’s not get into as panic just because the Dow closed down 100. Last week’s reflex rally off the BREXIT lows has provided us with a little wiggle room. But there are some things that were worrisome today, which should be watched very closely.
European banks were hammered today. Observe the cataclysmic trading action in PUK, DB, BCS, NBG, UBS, CS and LYG.
German sovereign yields are too low, delving into negative territory all the way through 15 years. Moreover, the entire Swiss yield curve is negative, through 50 years. This will have a debilitating effect on asset prices if this trend doesn’t reverse soon.
U.S. treasury yields are the most attractive in the world. Bear in mind, the meat ball’d nation of Italy has a 10 year bond yield that is 10bps LESS THAN ours. What sort of perversion of reality is this? Board the ark.
Gold and silver prices continue upwards, in spite of the fact that the deflationary vortex is ruinous banks.
The pound is at 31 year lows, now at the BREXIT lows. And, most importantly, the Japanese Yen continues to press forward, now 101.72 to the dollar. The Japanese yield curve is also a very negative one. Really, I don’t know what to tell you, other than stop being naive and don’t dismiss these unprecedented things as nothing. These are all gigantic bubbles that will one day explode and destroy the idiot portfolios of millions.
Lastly, keep your eye on crude. Should it get back down to the low $40s again, you will, once again, see a wholesale liquidation of that sector, which will, undoubtedly, spill over into our banks and the general market place.
These are not times to be greedy, but to be careful and wise.
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Benioff is the smartest man in corporate america, and he know that the Brexit is bad news http://www.businessinsider.com/marc-benioff-slams-uk-government-leaders-over-brexit-2016-6?r=UK&IR=T
Benioff is a business genius, but delusional liberal in politics.
It helps to be optimistic in business. You keep persisting and trying various things, and some of your ideas pan out. But the EU is one of those things that is not panning out.
I will rerun this grand Fly piece from earlier. Goddang dagnabbit that there son see lookee there
ibankcoin.com/flyblog/2016/07/05/german-15yr-bond-goes-negative-for-the-first-time-entire-german-yield-curve-barreling-towards-oblivion/
Speaking of bubbles have you looked at recent basketball salaries?
That’s not a bubble unless you think basketball is going away in five years. It’s 50 percent of league revenues distributed among to players under a collective bargaining agreement–money they created and earned, because the players are the product. Now, I will agree that it’s unfairly distributed within the player universe, as superstars are capped and rookies are stuck in indentured servitude for four years, but I can’t think of any real parallels in financial markets. It’s not a bubble like tech stocks or subprime mortgages becuase those were causes where “there was no ‘there’ there.” This is an actual product that people consume.
In short, it’s a boom, not a bubble.
Have you looked at your cable bill lately or paid for a game lately? All sports are in a bubble to me.
NBA has topped. Look at the demographics. Mexicans hate basketball.
scottbot- Your explanation is interesting and thought provoking to me.
Fly you a sports fan? If so how can you not love basketball. Nfl and fifa is the devil.
china loves basketball. euro loves basketball. and the mexicans in southern california parks loves basketball, even tho they cant play well. but that allows a korean like me be Blake Griffin. Fly your right about sports apparel but your wrong about NBA. NBA will be the most watched sports on TV!