#Financial risk

'Twas the morning of Xmas and all through the markets, not a human creature was stirring...but it appears the machines took major advantage of the low liquidity... Around 730amET, it seems the algos went on a deep stop hunt, flash-crashing EURUSD by four big figures, taking out the November 7th

Authored by Charles Hugh Smith via OfTwoMinds blog, Everyone who believes risk has disappeared has fallen for the con. Judging by this year's version of Santa Claus's reliable year-end stock market rally, risk has vanished, not just in stocks but in bonds, junk bonds, housing, commercial real

Submitted by Gary Evans of Global Macro Monitor We have long held that interest rates have been so low (especially real rates) that it will take some time to reach a level for them to really matter and impact markets. The 2-year yield crossing over the S&P500 dividend yield this past week for

Barely two months after JPMorgan's Marko Kolanovic previewed the next financial crisis, which he dubbed the "Great Liquidity Crisis", and which would be catalyzed by the following liquidity disrupting elements: Decreased AUM of strategies that buy value assets Tail risk of private assets

While the fear-tracking VIX has been languishing near record lows this year, a gauge of so-called ambiguity, meant to chronicle the degree of uncertainty investors have in the probabilities they use to make decisions, has been at all-time highs in recent months, indicating that there’s more fear