“the most important thing going on in global markets”

Via wknd notes by Eric Peters:

Meaning: “I want to be long vol on the consensus that Chinese leadership is prescient, omniscient,” said the CIO. “I’m unsatisfied with Wall Street’s facile explanations for the Yuan devaluation.” Thursday’s move lower was the biggest in 5yrs. China’s grumpiest bears expect the worst-case outcome is a soft landing. “There’s this naïve acceptance that no matter what happens in China (devaluations, rate spikes, rate declines, trust defaults, whatever), the leaders ‘meant to do’ them – that’s just not how the world usually works.”

Second Sun: “If tomorrow morning a second sun appeared, you’d carry on – what else would you do?” asked the CIO rhetorically. “Though you couldn’t help but think it’s a big deal, even if you didn’t know how or why it happened – meanwhile, wise men who didn’t predict it would say they expected it.” Correlations broke, and every crowded trade in the world blew up a month after China’s Yuan began its depreciation. “It’s probably the most important thing going on in global markets – and no one really knows why.”

Source:

Peters Capital Group