"FISCAL DOMINANCE", the latest fad in the financial commentry. Expect to see this pair of words pretty much everywhere in the coming quarters if not years. ukessays.com/assignments/ec… #equities #economy #talous

Charlie Munger,96:“We’re in very uncharted waters,” Munger said Monday about QE and fiscal deficits. “Nobody has gotten by with the kind of money printing we’re doing now for a very extended period without some trouble and I think we’re very near the edge of playing with fire.”

2021 there will plenty of US-Treasuries to buy. Absolute sum is staggering net 1840 billion $ AFTER taking into account the FED buying according to JP Morgan's calculations. #bonds #investments #sijoittaminen

Smaller company Russell 2000 trading at 2000+, an index which saw 40% of it constituents lose money already last year ie. before Covid. Total debt to Ebitda 12x+ (data Bloomberg). Index is up 100% from March lows. #equities #osakkeet

This year the best simple allocation strategy in US-equities has been to own stocks that trade at a price under 2$ per stock. Which ETF-provider will the first to offer ETF that only invests in under 2$ stocks? 😄 #osakkeet #equities

Bloomberg explains the high VIX-level as a symptom of increased single stock impl vol rather than anything systematic. Correlation between S&P members is still low. Makes sense with the current appetite for gamma by price/vol insensitive option buyers #equities #osakkeet

US Treasury’s cash balance stays at wildly elevated level. The money will undoubtedly be spent, but could well support treasury bond prices in the Q1 in the form of lower borrowing needs and thus way lower issuance vs the feared mountain of new debt #bonds #sijoittaminen

Impressive Euro Stoxx Banks. Last 17 days just one black candle. October strech was 26 with one ◼️candle, and yet the indx not even near the levels it dropped from when Covid stroke. One of the few things that haven’t normalized. Yet. #equities #osakkeet

Move on, nothing to see here. XOver-credit default swap has been trading in a tight range 3mths now.The⬆️in long end of the rates curve hasn't affected the support for credit. Yields are still stupidly low, 5-yr EUR swap rate is up 18 bps from lows but still at -0.32% #investment

Value stocks have had exceptionally good relative performance in Asia too, best quarter since the tech bubble. Asia & US,this is as much a 👍 Value stock-story, as it is 👎 Growth stock -story, in 🇪🇺value has not done as good,bcause of no rottening Growth-leg #equities #osakkeet

Euro Stoxx50 realized volatility has returned to a normal level preceding covid. Pretty remarkable considering the uncertainty still prevailing. Also the put implieds at the similar levels we got used to. Too much too fast perhaps? #equities #osakkeet

When all was pointing to a weaker USD, it naturally went a lot stronger, not that uncommon feature of the unpredictable FX-markets. Positioning is now much cleaner. Reckless fiscal policy, rates that already ran up, and mammoth deficit in trade balance. Chance for USD to ↘️?

Funnily enough,the UST 10yr implied put vols are now even lower than those of German Bunds.🤔UST supply picture/better chances of infl/sooner tapering one would expect higher relative implieds in the US Treasury Market (not to forget low free float in Bunds) #investments #bonds

EMU- govt spreads are widening vs German govies. France/Germany -spread widest since august-20. No obvious reason except very low free float of German bonds. There simply aren't natural sellers ie cash rates pressure to BTPS,FRTR, SPGB and so-on. Taper PEPP? #investments #bonds

Irrelevant in the new world, some say.... Still, quite fascinating graph of the barely changed world equities -earnings per share- since 2008 (by BCA Research) #equities

EUR 10/30 -swap curve steepness hasn't yet reached the level where it was pre-covid, +10ish bps steepness from current levels is needed. 50% retracement of the range where this curve has traded last 10 years stands at around 38 bps #rates #trading

Hmmmm....is Hang Seng trying to break out of the descending trend channel which was started back in June last year? Valuations are cheap, no one likes EM, but is there willingness to commit capital in uncertainty? #equities

Investors who owned negative-yielding bonds 12 months ago have lost about $1.7 trillion on a total-return basis,or 12.5%.That includes $295 billion of wealth lost by holding bunds, $260 billion from French government debt and more than $500 billion lost on lending to Japan(Bberg)