Junk bond investors are running for the hills. But there are no hills.
One of the many oddities of this cycle is that many things that were good in normal times have become bad.
Fisher reports from inside the FOMC: it’s getting more hawkish and will hike interest rates sooner than expected. Markets are in denial. Not going to be pretty.
Investors’ forecasts of rate hikes are well below those by Fed governors. “And it wouldn’t be good” if the gap gets closed “with great rapidity,” frets Fed Governor Lacker.
It always starts with a toxic mix.
How the Fed and other central banks channel wealth and income to rich households and companies at the expense of wage earners and the young.
The Only Risk on the Horizon is the Risk of Missing Out
When Goldman Sachs downgraded all global stocks, it gave a peculiar reason.
The world’s largest wealth manager is “very worried” about “the lack of liquidity” that could wreak havoc during the sell-off. It reduces risk “over the full spectrum of assets.”
The US economy has repeatedly failed to resume normal growth after the crash. But potentially worse is the decline in long-term growth estimates.