{"id":51486,"date":"2020-02-29T16:55:21","date_gmt":"2020-02-29T21:55:21","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51486"},"modified":"2020-02-29T16:55:27","modified_gmt":"2020-02-29T21:55:27","slug":"weve-reached-the-tipping-point-guggenheims-minerd-warns-virus-will-deflate-the-everything-bubble","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51486","title":{"rendered":"&#8220;We&#8217;ve Reached The Tipping Point&#8221; &#8211; Guggenheim&#8217;s Minerd Warns Virus Will Deflate The Everything Bubble"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/markets\/weve-reached-tipping-point-guggenheims-minerd-warns-virus-will-deflate-everything-bubble\">&#8220;We&#8217;ve Reached The Tipping Point&#8221; &#8211; Guggenheim&#8217;s Minerd Warns Virus Will Deflate The Everything Bubble<\/a><\/h3>\n\n\n\n<p>Last week,&nbsp;<a href=\"https:\/\/www.guggenheiminvestments.com\/perspectives\/global-cio-outlook\/coronavirus-impact-on-the-global-economy?utm_source=twitter&amp;utm_medium=social&amp;utm_term=scott+minerd&amp;utm_content=global+cio+outlook&amp;utm_campaign=coronavirus\">Guggenheim&#8217;s Global CIO Scott Minerd<\/a>&nbsp;exclaimed that &#8220;the cognitive dissonance in the market is stunning,&#8221; as he reflected on the ever-rising stock prices (and collapsing credit spreads) he was seeing in the face of growing global fears of the virus&#8217; spread.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/ace31310-3c7e-11ea-9fff-ad98e7dd8d9b.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p>And as the market began to waken from its dissonant slumber,&nbsp;<a href=\"https:\/\/twitter.com\/ScottMinerd\/status\/1232360612811898881?s=20\">he warned<\/a>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em><strong>&#8220;This is not a buy-the-dip market. It is a don\u2019t-catch-a-falling-knife market. &#8220;<\/strong><\/em><\/p><\/blockquote>\n\n\n\n<p>As he detailed to CNBC the threat the coronavirus poses to corporate earnings and the U.S. economy if the pandemic spreads.<\/p>\n\n\n\n<figure><iframe loading=\"lazy\" allowfullscreen=\"\" height=\"349\" src=\"https:\/\/player.cnbc.com\/p\/gZWlPC\/cnbc_global?playertype=synd&amp;byGuid=7000124030\" width=\"560\"><\/iframe><\/figure>\n\n\n\n<p>And now, after an unprecedented collapse in stock prices and Treasury yields,&nbsp;<a href=\"https:\/\/www.guggenheiminvestments.com\/perspectives\/global-cio-outlook\/note-to-clients-markets-infected-by-coronavirus\"><strong>Minerd details his portfolio positioning with coronavirus on the brink of pandemic<\/strong><\/a>.<\/p>\n\n\n\n<p>The impact of the coronavirus has made for a crazy couple of weeks in the financial markets. Now spreading beyond Italy into other parts of Europe, it is on the brink of a pandemic and investors, fearing a sharp slowdown in global growth, have reacted by taking out support for yields for the long bond and the 10-year Treasury note. Bonds are comfortably below 2 percent and the 10-year Treasury yield is hovering around 1.3 percent. Unlikely as it may seem, technical analysis now indicates a target yield on the 30-year bond at 1 percent and the 10-year note at 0.25 percent. Stocks are nearing correction territory, with more downside likely.<\/p>\n\n\n\n<p>At the same time that long Treasury yields are making new historic lows,&nbsp;<strong>credit spreads, while widening, remain relatively tight. This does not make any sense given the fundamental backdrop which indicate that defaults will rise significantly,&nbsp;<\/strong>particularly in energy, airlines, retailing, and hospitality. Nevertheless, central bank liquidity continues to drive flows into bonds at a record pace. These flows are keeping spreads tight and, until there is an interruption of the inflows, credit spreads will be contained.<\/p>\n\n\n\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;We&#8217;ve Reached The Tipping Point&#8221; &#8211; Guggenheim&#8217;s Minerd Warns Virus Will Deflate The Everything Bubble Last week,&nbsp;Guggenheim&#8217;s Global CIO Scott Minerd&nbsp;exclaimed that &#8220;the cognitive dissonance in the market is stunning,&#8221; as he reflected on the ever-rising stock prices (and collapsing credit spreads) he was seeing in the face of growing global fears of the virus&#8217; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,4],"tags":[28817,29011,200,17853,1849,26388,5010,4318],"class_list":["post-51486","post","type-post","status-publish","format-standard","hentry","category-economics","category-environment","tag-coronavirus","tag-covid-19","tag-default","tag-everything-bubble","tag-financial-markets","tag-scott-minerd","tag-tipping-point","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51486"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51486\/revisions"}],"predecessor-version":[{"id":51487,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51486\/revisions\/51487"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}