Brent $82.75 down $1.03, Nov. WTI $80.37 down $1.41 after trading as low as $79.78.From Conor Sen:
Equity index futures indicating down 152 on the DJIA and down 21.25 on the S&P 500.
With every downtick starting to feel the old "Long ain't wrong" vibe....
The Great Divergence: The Economy is Getting More Stable, Financial Markets Are Getting More Fragile
Still processing the bond market moves of yesterday…HT to, and headline from: Abnormal Returns
Yesterday was really stupid. As have been the past few weeks, which increasingly feel like a “baby August 2011,” when markets were even more stupid.
The challenge for portfolio managers in 2014 is that you’d be hard-pressed to find a 5-year period in US history where the economic trajectory was more stable. Real GDP has generally grown between 2-3%/year. Inflation has been in the mid 1%’s. Job growth has been remarkably stable, averaging 150-225k/month. Profit margins have been stable for the past few years, and overall earnings growth has been, I don’t know, 5-8%/year. Monetary policy has been ultra accommodative. Fiscal policy has been…consistent in its level of frustration....MORE