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Credit Bubble Bulletin/Doug Noland/12-12-2020
“November’s record $121 billion ETF inflow – boosting the y-t-d flow tsunami to a record $659 billion. SPACs and frenetic retail call option buying (one can only imagine current hedge fund derivatives strategies). Friday’s record $18 TN of negative-yielding global bonds (now including over-indebted Portugal and Spain). Bund yields at negative 0.64%. The bottom line: Securities markets – profoundly speculative and unmoored. These darling IPOs – along with the equities market more generally – are dispensing some serious “wealth creation.” Future historians will recognize it much more in the context of Bubble period wealth redistribution and destruction. For now, this fiasco is one hell of party (patrons luxuriating at the endless punchbowl).”
USAGOLD note: As noted in a short study, we posted last week so-called ‘smart money’ is selling according to indicators tracked by SentimenTrader. Noland is not shy about expressing how he feels about what he calls Acute Monetary Disorder..”The numbers,” he says, “are so huge as to be numbing; nothing remotely normal about any of this.”
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