While zombies were pretending that nothing was happening, all major sources of liquidity were systematically depleted. And all asset classes were pounded (except recession stocks). In this last leg down, everything gets synched to the downside at the same time, amidst zero liquidity...
These asset classes have already been pounded:
Carry tradesOilCommoditiesGlobal stocksEM CurrenciesCyclical stocks Big Cap TechGrowth/momentum stocksBanks/FinancialsSmall CapsMost shorted stocksJunk BondsLeveraged loans
All major sources of liquidity have been depleted:
Central Banks
Profits/buybacks
Momentum traders
Carry trades
Institutions
Short-covering
Sovereign wealth funds
"And then they learned that printing money to buy stocks wasn't the secret to effortless wealth. Because after all, who knew?"
Wilshire with Fed Funds rate and Fed balance sheet (green):
All major sources of liquidity have been depleted:
3x overvalued recession stocks are the last asset class to roll over...
"And then they learned that printing money to buy stocks wasn't the secret to effortless wealth. Because after all, who knew?"
Wilshire with Fed Funds rate and Fed balance sheet (green):
