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News Link • Economy - Economics USA

"The Capitulation Begins": Everyone Is Bearish But No-One Is Short

•, By Tyler Durden

... increasingly more traders have thrown in the towel, resulting in YTD returns which are truly "historic" with not one single asset generating positive returns for the first time since the Nixon presidency.

Well, that's not exactly right: one asset is outperforming - the one which usually does best just as the economy slides into a recession or worse: cash. As Bank of America notes,  the YTD score for the top global assets is the following:

equities -4.2%,

bonds -2.3%,

commodities -6.2%,

cash 1.7%,

US$ 4.9%.

Drilling down reveals an even uglier picture: the 2018 bear market has spared nobody with US Treasuries down -4.9%, the 5th largest loss since 1970, US IG bonds -3.3%, their 4th largest loss since 1970, meanwhile 1881 of 2767 global stocks are in a bear market, down more than 20%, 86 of 94 equity indices underwater, and the cherry on top - the FAANG bull market "leader" is down -26% from highs, which according to BofA's Michael Hartnett is "a big nasty bear market."

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