Bears rest on the sidelines, Bulls take over...and More

1. Short interest in markets vanished and now at 1% of the market cap, that is the lowest observed over the last 15 years. Put to call ratio indicating that the bears have exhausted. There is massive short covering, as the most shorted stocks are now almost double from their march lows, as compared to the SPX recovery of 50 percent.

2. Economic rationale and stock market exuberance is distancing itself away and that bothers the value investors and traditional fund managers, are markets too smart or too foolish.

3. Number of IPOs per year have fallen from 285 to 115 from 2013 to 2019 accruing to the rise in funds available with the VC funds, leaving the companies to operate privately. Furthermore, the younger firms operate opaquely and fear the public scrutiny, furthermore it leaves more promoter stake in the business.

4. Can masks replace lockdowns?- The economic cost of lockdowns are huge and thus just wearing masks helps the spread to reduce and thus recover the economy faster. A study shows that if an American wears a mask a day he saves almost 60 $ of GDP.

5. USD debasing comes from ultra loose policy by Fed and their endless easing plan, furthermore US has recovered the least of all the major economies. This makes US exports more competitive in the international space and thus such restoration of the exchange rate is of paramount importance for it to get the deficit in line.

6. The Chinese payment system and digital currency is picking up very quickly and soon may make its way to more countries.

7. Western countries are facing huge costs to relocate existing supply chains from China to more localized centers. Surprising part is the extensive use of automation and robots to bring this reshoring of supply chains and manufacturing units.

8. Bankers in London and other UK cities are planning to relocate to other European cities, amidst the grey around the No deal Brexit. Because if this is in place, then companies based in London can't do cross border business from their London branches, thus limiting their business to the UK.

9. According to Briyan Monhinan, the Fed needs to fire another round of stimulus, for pushing other industries across the same bridge the healthcare and realty crossed.

10. Brexit deal results will shape BOE policy decisions, and might push the body to enter negative territory for the first time ever. Brexit could result in higher UK taxes, customs and higher costs for business. Negative interest rates are in the toolbox but the deal outcomes would decide when and to what extent they will be used, as they have bad effects on the banking sector of the country.