Massive divergence due to elections just caused the spread between Brazilian stocks and emerging markets index to reach its highest level in history! Wonder which one is going the wrong direction…

Another one of those eerie resemblances to previous market tops. Global stocks to US Treasuries ratio has now broken down after reaching just 51bps of its record level at tech bubble peak.

I am amazed German 10-year Bunds yield 122 bps lower than Fed fund rates at a time when the ECB bond buying spree is set to end shortly. That’s the largest negative spread since 1989! Coincidentally, the same yield disparity preceded the last 3 recessions!!!

This is the level of insanity credit markets have reached: Would you ever buy a 30-year bond that yields less than the LIBOR overnight rate? 10 countries offer this great deal. What we have is a massive yield curve inversion globally.

Interesting breakdown in oil today. If it’s going to follow EM currencies as it has historically, there is a lot more downside.