It is the 19th of September 2019

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Eric Peters: "The Next Market Cleanse Will Be Sharp, Deep, Fast And Feel Like The End Of The World"

The latest weekend note by Eric Peters, CIO of One River Asset Management, is his latest masterpiece in lyrical, stream of consciousness, financial analysis, and can be broadly divided into to broad parts: his latest take on financial markets analyzing the build up of disequilibrium which eventually culminates with discrete "flushes" that reset the system; how bold investors inevitably give up on financial sense and logic long (or just) before said flush takes place, and what this upcoming Minsky Moment could mean for the future. We have excerpted from this section in the current note, as for the remainder of his weekend observations - which deal with tectonic macro and geopolitical shifts - we will follow up in a subsequent post.

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Tech Tumble Spooks Stocks (Briefly) As VIX Curve Steepens To 7-Month Highs

"A day above ground is a day to buy stocks..."

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What Share Of Bond Markets Do Central Banks Own: Deutsche Bank Answers

With the latest ECB statement due out in just two days, traders are curious to see how Mario Draghi will escape from the trap in which the European central bank has found itself: on one hand, seeking to temper the recent dramatic rise in the Euro, on the other running out of QE eligible private-sector debt to monetize, especially in its largest captive market, Germany. While we don't know how Draghi will succeed (or fail) in this endeavor, overnight Deutsche Bank has released a useful analysis breaking down what share of bond markets the biggest central banks currently own.

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Shocking Admission From Global Head Of Strategy: "Our Clients Have Given Up On Valuation As A Metric"

For all the recent concerns about an "imminent" nuclear war with North Korea (not happening, according to the head of the CIA), which prompted a stunned reaction from Morgan Stanley which earlier today observed the "70% rise in the VIX index over three days, 2% drop in global equities, and more than a few holidays disrupted", leading it to conclude "Well, That Escalated Quickly", the market continues to ignore the real risk: the upcoming central bank balance sheet taper which will have a dire and drastic impact on markets according to Citi's global head of credit product strategy, Matt King:

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London Property Bubble Bursting? UK In Unchartered Territory On Brexit and Election Mess

- London property bubble bursting? UK in unchartered territory on Brexit and election mess
- Evidence of downturn in London housing market

- Over 75% of London homes now selling below asking price
- Prime north London property down 6 per cent annually
- House prices have not fallen for three consecutive months since the 2009 crisis
- Bank of England report expresses worry over UK property market
- ‘Adverse shock’ to UK economy may amplify negative feedback loop

- Increased political and economic uncertainty has weakened fragile London buyer sentiment
- Bank of England Financial Stability Report: "Mortgages are the largest loan exposure for UK lenders"
- BOE FSR refers to a "self-reinforcing feedback loop" that, if triggered, would cause another 2008-style crisis in the UK

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