Financial Stress Indicator Spikes---Stay Tuned!

The weekly St. Louis Fed Financial Stress index, released today, just spiked beautifully. It had been at historic lows back in November, an expression of ultra-loose financial conditions in the US economy, dominated by risk-blind investors chasing any kind of yield with a passion, which resulted in minuscule risk premiums for investors and ultra-low borrowing costs even for even junk-rated borrows. The index ticked since then, but in the latest week, ended February 9, something happened:

 

 

https://wolfstreet.com/2018/02/15/financial-stress-spikes-markets-long-in-denial-suddenly-grapple-with-new-era/

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