Market Dysfunction Will Ultimately Have Its Limits

[Guest]

Global policy uncertainty has never been higher and the world is erupting in mass protests: Chile, Ecuador, Lebanon, Barcelona, France, London, Puerto Rico, Hong Kong, Iraq, Guinea, Bolivia, Algeria, Haiti, Egypt, Pakistan, Brazil, Sudan, and today, Azerbaijan.

Source: Bloomberg

Both of which are among the reasons why former fund manager and FX trader Richard Breslow warns that markets are, as they have become used to being, too sanguine in the face of chaos.

Nothing bad has happened in the markets so far today. In fact, they look mostly benign and calm. Although it was a little dicey at the beginning. And we’ll have to see how earning reports go. With the bulk of the news on the week’s calendar yet to come, it makes some sense that the net changes in asset prices have settled back down to not very much changed. Yet, looking through my inbox, if there is one word to describe the general mood, it’s “blah.”       (Via Bloomberg).

Bond yields stalled where they, perhaps, should have, but that’s no fun. For the most part, global equities haven’t done anything particularly wrong. Yet, they appear at risk of threatening to squander the hard work they put in toward mounting a renewed push to the upside. Currency trading has had its momentum sucked out of it. Commodities look like they simply can’t come to a decision about the prospects for future demand, regardless of the news.

Traders have, time and time again, been remarkably willing to accept kicking the can down the road as a net positive. The status quo, with dovish central banks thrown into the mix, worked just fine for them. But, it just might be the case that patience is showing evidence of wearing thin. There is a vibe in the air that enough is enough already. It will be interesting to see if this is a passing phenomenon or will become a more enduring malaise. Given the fickle behavior of markets, however, it’s a risk to overstate the meaningfulness of one day’s emails. But worth keeping an eye on. Particularly with so many self-inflicted wounds weighing on things.

Dysfunction, however, will ultimately have its limits. Especially with the world’s economic growth forecasts continuing to be serially downgraded. The IMF just added Asia to the list. At 5% for 2019, it will be at the slowest growth since the financial crisis. Traders have been willing to stay bullish on a lot of assets, including many emerging markets. Despite the limits of monetary policy being gradually accepted. And proper fiscal policy mostly a no-show.

But the scenes of massive, and in many cases violent, protests taking place all over the globe might finally expose how tenuous is the interconnectedness of the real economy and the level of financial conditions indexes. A lot of people are just tired of waiting for better, and more equally distributed, economic results. And sense their time might not be coming. These emotions are infectious and this has definitely not been business as usual.

Hong Kong stocks were down today. Trade, the property sector, impatience over additional measures from Beijing to shore up the economy and a technical correction were all cited. But I was struck by those who argued that the possibility of Chief Executive Carrie Lam being replaced, next March no less, was the cause as it could “hurt confidence” and increase uncertainty.

The current reality for many places in the world, and challenge for traders, is that the citizenry decides that those two possibilities become more and more the outcome sought.

I wonder if a popular download will increasingly be the movie “Network”.

https://www.zerohedge.com/markets/trader-warns-market-dysfunction-will-ultimately-have-its-limits

Edited October 23, 2019 by Guest
''look at the feet, gravity won't allow it'' - fantastic trolling James R

[ronwagn + 6,290]

The political climate worldwide is more chaotic than I can recall it being since the Cuba crisis or Vietnam era. I think it boils down to a massive political battle between globalists, socialists, capitalists, and nationalists. Lots of mixtures of the former. Like a boiling pot. 

[remake it + 288]

On 10/24/2019 at 3:14 AM, DayTrader said:

Global policy uncertainty has never been higher and the world is erupting in mass protests: Chile, Ecuador, Lebanon, Barcelona, France, London, Puerto Rico, Hong Kong, Iraq, Guinea, Bolivia, Algeria, Haiti, Egypt, Pakistan, Brazil, Sudan, and today, Azerbaijan.

https://www.zerohedge.com/markets/trader-warns-market-dysfunction-will-ultimately-have-its-limits

There is no such thing as "global policy" although the apple cart is being upset by bad hairdos who fail to understand the role of regulation in holding markets together, and instead prefer to hoist them them on their own petards.

[Guest]

Policies round the globe + uncertainty = global policy uncertainty.

TDS rampant as always.

And still reading every word I post I see LOL. 

Edited October 24, 2019 by Guest

[remake it + 288]

12 minutes ago, DayTrader said:

Policies round the globe + uncertainty = global policy uncertainty.

Nice try, but language does not work that way unless you want to always make mountains out of molehills.

12 minutes ago, DayTrader said:

And still reading every word I post I see LOL. 

Delusional...your copypastes are continually proven to be rubbish journalism, and this site appears to be an echo chamber for people believing some truly weird shyte.

Edited October 24, 2019 by remake it
fixed formatting

[Guest]

6 minutes ago, remake it said:

Delusional...your copypastes are continually proven to be rubbish journalism

He says after just reading yet another, commenting on it and proving my point.

Hopeless. Truly hopeless seriously.

Mr Chinese Press calling out journalism errors. I feel I've been over this. Rather tedious logic.

Cheers. 

Edited October 24, 2019 by Guest

[remake it + 288]

4 minutes ago, DayTrader said:

He says after just reading yet another, commenting on it and proving my point.

Your copypaste has consistently confused concepts to weave a story that has Day Trader appeal, but is a logical clusterf#ck.

[Guest]

Hopeless. You always read every one, so they clearly appeal to you haha. 

Get a hobby mate seriously.

''Ignore user'' still works, but you don't. You follow me like a dog. It's flattering but boring.

#ratcagedroid

Edited October 24, 2019 by Guest

[remake it + 288]

9 minutes ago, DayTrader said:

You always read every one, so they clearly appeal to you haha. 

Untrue, but irrelevant to the point about the quality (lack thereof to be more accurate) of what is posted here to start some threads, while your comments show no capacity to do other than attack the messenger rather than the message. 

[Guest]

Zzzz well the messages are boring  - it's bad journalism, DT appeal, copypastes, people here believe 'weird shite' to use your words  ... so it's fine for you to attack the messenger and others?

Ignore me if you don't like my posts and threads, it's pretty simple. Why don't you? You're going on about the quality and still reading them all?? How bored are you? You're going on and on about bad journalism when you only read what your government approves you to read??!!

Shhh now Winston. Move along.

Find the 'ignore user', then you can read just what you're comfy with, or just what's drilled into you. 

Cheers. 

Edited October 24, 2019 by Guest

[Guest]

https://uk.reuters.com/article/uk-usa-china/pence-backs-hong-kong-protests-in-china-speech-slams-nba-and-nike-idUKKBN1X316B

https://uk.reuters.com/video/2019/10/24/we-stand-with-you-pence-to-hong-kong-pro?videoId=616839767&videoChannel=-11765

https://uk.reuters.com/article/uk-china-rights-eu/eu-awards-jailed-uighur-activist-rights-prize-angering-china-idUKKBN1X317X

Oh it angered China. There's a surprise. More bad journalism that you'll read.

Edited October 24, 2019 by Guest

[Guest]

On 10/24/2019 at 10:08 PM, remake it said:

language does not work that way unless you want to always make mountains out of molehills.

Are you trying to be ironic?

[Rob Plant + 2,756]

On 10/24/2019 at 9:24 PM, remake it said:

There is no such thing as "global policy" although the apple cart is being upset by bad hairdos who fail to understand the role of regulation in holding markets together, and instead prefer to hoist them them on their own petards.

And there it is!

Its all Trumps fault!

[Guest]

yep of course

there can be no thread that doesn't mention Trump

oh ... s&p hits record highs today .... LOL

S&P Opens At New All-Time Record Highs, Trump Takes Victory Lap   by Tyler Durden Mon, 10/28/2019 - 09:49

Update (0945ET): That didn't take long. President Trump takes quick victory lap...

Donald J. Trump

✔@realDonaldTrump

The S&P just hit an ALL TIME HIGH. This is a big win for jobs, 401-K’s, and, frankly, EVERYONE! Our Country is doing great. Even killed long sought ISIS murderer, Al-Baghdadi. We are stronger than ever before, with GREAT upward potential. Enjoy!

1:41 PM - Oct 28, 2019

[Douglas Buckland + 6,308]

On 10/25/2019 at 5:34 AM, remake it said:

Untrue, but irrelevant to the point about the quality (lack thereof to be more accurate) of what is posted here to start some threads, while your comments show no capacity to do other than attack the messenger rather than the message. 

‘Remake it’, wouldn’t your time be better spent doing something meaningful and relaxing? Stamp collecting, bonsai tree grooming, meditation, watching paint dry, playing on the freeway, etc...

[Rasmus Jorgensen + 1,169]

18 hours ago, DayTrader said:

there can be no thread that doesn't mention Trump

 

All hail Trump. 

[Guest]

''All hail the EU'' lol...  Just this morning I've seen 3 articles on 3 different countries about immigration. I'm sure this is the EU's fault.

Juncker bad remember.

You love Trump really. You're kidding no one. 

[Rasmus Jorgensen + 1,169]

1 minute ago, DayTrader said:

You love Trump really. You're kidding no one. 

Are you suggesting that I was sarcastic ? never. I have learned that this forum is for factual and well argued statements. 

[Rasmus Jorgensen + 1,169]

14 minutes ago, DayTrader said:

''All hail the EU'' lol... 

It is rather lonesome hailing EU at this site... 

[Guest]

''When you find yourself on the side of the majority, it is time to pause and reflect''

- Mark Twain      (but he'd agree about the EU)

 

[Rasmus Jorgensen + 1,169]

1 hour ago, DayTrader said:

''When you find yourself on the side of the majority, it is time to pause and reflect''

- Mark Twain     

 

Trump supporters on this forum should take note.

[Guest]

So should the majority of the world's journalism ... 

[Rasmus Jorgensen + 1,169]

world situation sorted. This is easy. I am going into politics. 

[Rasmus Jorgensen + 1,169]

10 minutes ago, DayTrader said:

So should the majority of the world's journalism ... 

I am not sure that they follow this forum.

[Guest]

Hahah I mean in terms of what the majority prints.

And yes, politics is easy, we sorted this yesterday.

EU heads / Iran / NK / Xi / Pelosi / Shooty War - bad

Trump / Johnson - not perfect but not bad

Brexit / UK in general - good... verging on amazing

Denmark / USA - meh ...  kinda average but tolerable   

Easy.

#DT2020