Greetings,
Equities: Encouraged by the Reddit group r/wallstreetbets (and other online discussion boards), retail traders caused a massive short-squeeze in GameStop shares. The practice of targeted short-selling appears to have been permanently altered.
Credit: Supported by the Fed’s purchases, agency MBS debt continues to rally.
MBS spreads have tumbled going into the year-end, pushing mortgage rates lower.
Commodities: Fund managers have been boosting allocations to commodities.
Cryptocurrencies: There are over 120,000 Bitcoin option contracts (collectively worth $4 billion) set to expire on Friday. This could lead to significant volatility as January draws to a close.
China: China’s short-term rates spiked as liquidity tightened.
Food For Thought: The most beneficial place to start a company:
Edited by Devon Lall
Contact the Daily Shot Editor: Editor@DailyShotLetter.com