Just signed on, did anything happen this weekend????
Remember how the market was hyper focused on tarriffs 2 months ago as correlations hit 1. Did we solve that one yet? Asking for a friend.
Now, fintwitters are all experts on Fordow and the Stait of Hormuz. Tarrifs are a sideshow. Funny how that works.
But one day, even the Ayatollah will be a sideshow to the main event. When the real vigilantes (e.g. the bond vigilantes) arrive on the scene, Iran and trade deals will be a distant memory as CNBC provides 24/7 coverage of “Markets in Turmoil” as the credit crisis infects the entire financial system.
Very rarely do markets top on a publicized event. Sure they may have a quick drawdown but its rare to put in a “event” top. True deleveraging’s and re-rates typically happen on the back of a credit crisis. And we are inching closer to another breakdown in bonds (i.e. TLT as the proxy). Sure, this may get bid on the back of the B-2 bombings/WW3, but that’s not a happy chart…
Needless to say, we are “closely monitoring the situation” but from the perspective of the US blowing out their balance sheet on another Operation that they simply can’t afford. All eyes on credit as we head deep into Summer, eventually this will take center stage. Don’t get distracted…
Kuppy’s Event Driven Monitor (“KEDM”) is not a financial or investment advisor and the information contained in this publication is not intended to constitute legal, accounting, or text advice or individually-tailored investment advice and is not designed to meet your personal financial situation. The investments discussed in this publication may not be suitable for you. You are required to conduct your own due diligence, analyses, draw your own conclusions, and make your own investment decisions. Any areas concerning legal, accounting, or tax advice or individually-tailored investment advice should be referred to your lawyers, accountants, tax advisors, investment advisers, or other professionals registered or otherwise authorized to provide such advice. KEDM makes no recommendations whatsoever regarding buying, selling, or holding a specified security, a class of securities, or the securities of a class of issuers, and all commentary is for educational purposes only. The investment examples noted are intended to provide and example of the events and data KEDM flags each week and is not representative of typical returns generated by each event or any future returns.
Save your cart?
x
We save your email and cart so we can send you reminders - don't email me.
It’s All A Sideshow…
A low frequency but juicy strategy where the edge is government incompetence.
Let’s dig in…
Just signed on, did anything happen this weekend????
Remember how the market was hyper focused on tarriffs 2 months ago as correlations hit 1. Did we solve that one yet? Asking for a friend.
Now, fintwitters are all experts on Fordow and the Stait of Hormuz. Tarrifs are a sideshow. Funny how that works.
But one day, even the Ayatollah will be a sideshow to the main event. When the real vigilantes (e.g. the bond vigilantes) arrive on the scene, Iran and trade deals will be a distant memory as CNBC provides 24/7 coverage of “Markets in Turmoil” as the credit crisis infects the entire financial system.
Very rarely do markets top on a publicized event. Sure they may have a quick drawdown but its rare to put in a “event” top. True deleveraging’s and re-rates typically happen on the back of a credit crisis. And we are inching closer to another breakdown in bonds (i.e. TLT as the proxy). Sure, this may get bid on the back of the B-2 bombings/WW3, but that’s not a happy chart…
Needless to say, we are “closely monitoring the situation” but from the perspective of the US blowing out their balance sheet on another Operation that they simply can’t afford. All eyes on credit as we head deep into Summer, eventually this will take center stage. Don’t get distracted…
OR
Start your 28-day free trial
Kuppy’s Event Driven Monitor (“KEDM”) is not a financial or investment advisor and the information contained in this publication is not intended to constitute legal, accounting, or text advice or individually-tailored investment advice and is not designed to meet your personal financial situation. The investments discussed in this publication may not be suitable for you. You are required to conduct your own due diligence, analyses, draw your own conclusions, and make your own investment decisions. Any areas concerning legal, accounting, or tax advice or individually-tailored investment advice should be referred to your lawyers, accountants, tax advisors, investment advisers, or other professionals registered or otherwise authorized to provide such advice. KEDM makes no recommendations whatsoever regarding buying, selling, or holding a specified security, a class of securities, or the securities of a class of issuers, and all commentary is for educational purposes only. The investment examples noted are intended to provide and example of the events and data KEDM flags each week and is not representative of typical returns generated by each event or any future returns.