Thursday, November 20, 2008

LIQUIDITY NEWS. A RALLY IS IN SIGHT!
[Latest Endogenous Liquidity Index: -65.8%; Latest Global Dollar Liquidity measure: +39.6%]

A rally is in sight. When valued against the Goldilocks/Stagflation index, the S&P500 trades now at the cheapest level ... ever! This is due to the collapse of ten-year inflation breakevens, courtesy of the phenomenal rally in Treasuries. The last time something like this happened, we duly got a 15% rally on the S&P500. Blood on Wall Street: a rally in sight.