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    Smartkarma Research: Build a Bear

    The small uptick in confidence at the beginning of June proved to be an anomaly, with the S&P500 now having fallen for 9 out of the last ten weeks.

    Synopsis

    This is actually consistent with the inversion of the relative roles of equities and fixed income under QE, where equities were providing income and bonds providing capital gain.

    Bond market volatility continues to lead all markets lower, triggering a further round of deleveraging. Cryotos have been crushed and Credit markets appear to have hit capitulation, even if equities have not. FX volatility, especially in the Yen, is also causing, as well as reflecting, distress in terms of forced buying/distressed selling and is being exaggerated by the (VaR) volatility based risk management models that trigger further
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    The Economic Times