Dow Soars Over 1000 Points Since Riots Started; Bonds, Bullion, & Dollar Dumped Tyler Durden Wed, 06/03/2020 - 16:00 So there is this... Worst social unrest in 50 years (cops killed, cities burning, stores looted nationwide) Global Pandemic ongoing (some reopenings but 2nd wave cropping up) WHO sees no drug showing any efficacy in reducing mortality (but we rallied for weeks on vaccine hope) Economic collapse (no v-shaped recovery in any 'hard' or 'soft' data) Earnings plunge (recovery being pushed out) US-China tensions increasing And then there's this - The Dow is up over 1000 points from Sunday night's open... The Dow was up over 2% today (topping 26k), Trannies 3.5%! (little weakness into the close)... The Nasdaq 100 topped its all-time closing record today and at this rate, the S&P 500 will be green YTD by the end of the week... Source: Bloomberg VIX compressed to a 25 handle but lags the market... Source: Bloomberg Because... Source: Bloomberg Scott Minerd, chief investment officer at Guggenheim Investments, said in a Bloomberg television interview today that The Fed sent the world a “buy signal” through its programs propping up the corporate bond market, which will force corporations to become even more leveraged.. BUT... The Fed’s actions will eventually force it to face a “day of reckoning” The Fed will ultimately reduce corporate productivity, and could result in stagflation over the next decade One word sums it all up... And as stocks soar, bonds are puked (safe-haven hedges are for pussies)... Source: Bloomberg The dollar is dumped... Source: Bloomberg The euro hit 12-week highs (up 8 days in a row) are Merkel agreed to stimulus deal... Source: Bloomberg And precious metals pummeled (barbarous relics, meh)... With Gold outperforming silver in the last two days... Source: Bloomberg The Treasury curve has steepened significantly... Source: Bloomberg After yesterday's battering, cryptos drifted higher today... Source: Bloomberg WTI Crude managed to hold gains after a roller-coaster day on OPEC headlines and inventories... And finally, greed (apparently) is good again! Source: CNN Valuations are back at record-breaking levels... Source: Bloomberg The Put-Call ratio has reached near cycle low levels once again as fear evaporates... and while not an immediate risk catalyst, it has historically not ended well... Source: Bloomberg