The Median US Stock Is Now Down 50% From Its Highs As World Loses $25 Trillion In A Month

The Median US Stock Is Now Down 50% From Its Highs As World Loses $25 Trillion In A Month

The Median US Stock Is Now Down 50% From Its Highs As World Loses $25 Trillion In A Month

Global stock and bond markets have seen $25 trillion of ‘paper’ wealth erased in the last month, wiping out all the gains from the Dec 2018 crash lows….

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Global bonds are actually still up around $5 trillion while global stocks have lost around $5 trillion since the Dec 2018 lows, and a lot of those losses come from the US markets where the median stock is now down 50% from its highs(because the Value Line index below is based on a geometric average the daily change is closest to the median stock price change)

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

As Washington signs and promises more and more bailouts and helicopter money drops, USA sovereign risk is starting to get a little spooked…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Systemic risk remains extremely elevated…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Which makes sense when the world’s largest banks are seeing their credit risk explode like it did ahead of the Lehman crisis…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

And despite the endless liquidity from global central banks and polititicians, financial conditions are tightening at their fastest rate ever…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

And the real ‘fear’ trade is now at its most extreme since the peak of the Lehman crisis…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Policy Fail – The Dollar rallied for the 8th straight day, soaring to a new record high despite The Fed opening unlimited FX Swap Lines…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

This is the largest 8-day rally in the DXY Dollar Index… ever! Greater even than when Soros broke The Bank of England in Sept 1992…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

But The Fed will “never give in”…

Since the COVID-19 Malrarkey began, Chinese stocks remain the leaders (down only 12%), while Europe is the laggard…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

US equity markets soared today (thanks to the biggest short-squeeze in 7 years), but failed to erase yesterday’s gains… (NOTE Nasdaq just tagged unch from Tuesday and then rolled over – algo-tom-foolery)…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

On the week, it’s still a shitshow with The Dow worst, down 13%…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Today saw “Most Shorted” stocks soar 8% – the biggest short-squeeze since August 2013

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Directly virus-affected sectors rebounded today…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

VIX fell notably today, testing below 70 ahead of tomorrow’s Quad-Witch option expiry…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Meanwhile, Boeing credit risk continues to soar (as questions rise about whether they should be bailed out or not)…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

And Ford suspended its dividend and withdrew its guidance sending its credit risk soaring…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Credit markets were not buying what stocks were selling today…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Treasury yields were mixed with the long-end higher and rest of the modestly lower (despite a huge range)… (10Y yields briefly dipped below 1.00% today)

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Another late-day purge in yields pushed 30Y to end higher on the day…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Munis were massacred today – 10Y yield spiking 47bps!! (MUNI-BOND OUTFLOW ALMOST THREE TIMES PREVIOUS RECORD)

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

EUR tumbled today to 3 year lows today in biggest loss since Jan 2001 (bigger than Jun 2016 Brexit vote loss)

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

And Cable crashed to the weakest since 1985…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Cryptos had a big day with Bitcoin Cash outperforming…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Today’s commodity markets were dominate by oil’s biggest rally ever…however, given the carnage in crude, WTI is still down 20% on the week…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Today was oil’s biggest daily gain… ever. Bouncing off a $20 handle and helped by talk of Trump intervention, WTI was up around 25%!! However, in context, it doesn’t look like much (apart from the insane $2 spike at settlement for a 35% surge intraday)…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Oil and the dollar both rallied together late on…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Gold was modestly lower on the day but silver actually managed gains, bouncing off $12 again..

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

And on a somewhat related note, is this the other reason why gold has been sold?

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Volatile day in PMs with Palladium best and Platinum worst…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Finally, as Bloomberg notes, anyone referring to the past month’s plunge in U.S. stocks as a crash has history on their side. The S&P 500 Index’s volatility for the 10 trading days ended Wednesday was 122%, according to data compiled by Bloomberg.

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

Only two periods have produced higher readings: the aftermath of the 1929 Black Tuesday crash and the 1987 Black Monday crash. The volatility gauge climbed more than 17-fold from Feb. 19, when the S&P 500’s latest bull market ended, through Wednesday.

The FRA-OIS spread spiked once again today signaling major tensions in the liquidity markets remain…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

And global basis swaps spiked again (led by JPY) as the dollar shortage worsened today…

The Median US Stock Is Now Down 50% From Its Highs As World Loses  Trillion In A Month

Source: Bloomberg

In other words – whatever The Fed is doing – “It’s Not Working!”


Tyler Durden

Thu, 03/19/2020 – 20:45

Author: HEDGE

Hedge Accordingly was founded ahead of the global financial crisis in January of 2008, with the goal of providing our readers our unique take on latest news on stocks & WallSt. Hedge Accordingly produces both original, and aggregated Wallst news content from top publishers around the world. We curate aggregated content covering the latest news on politics, stocks, wall street, and the tech industry. Click Here for Free stock charting, quotes and a bitcoin, forex and currency exchange. Learn More About Hedge