German Bunds Race Back to 0%; More Risk is Required, Obviously

Never get mad at stocks or the market. That’d be a waste of your time. Should stocks jack knife higher following a horrific terror attack? Probably not. But if recent history is of any use, markets always rally after these attacks. It’s a compilation of all of the assholes in the world, pressing buttons into their computers, greedily trying to profit. It should come as no surprise that German Bunds are racing back to zero, from the deep -0.25% hole it found itself in just a few weeks ago.

A perverse Eddie Barzoon styled narcissism is in the air. Markets want higher. The price of oil doesn’t matter. The fact that travel to Europe is now deemed overtly dangerous doesn’t matter. The fact that stocks have risen for 10 days in a row doesn’t matter. The fact that western governments are moving towards authoritarianism doesn’t matter.

Stocks are up. Ergo, by default, everything is good.

Did I tell you German rail bonds were recently issued with a negative coupon?

It’s a slovenly Friday morning, after a long fraught filled week. Don’t expect Eddie Barzoon to do much selling, unless of course he needs the money for something extravagant or is forced to sell.

Bonds down, stocks up.