Feeling stressed? Worried about the financial markets? Don’t be – the Fed has an index for that. The St. Louis Fed ‘financial stress index’, constructed from 18 weekly data series (6 interest rates, 6 yield spreads, and 5 others) fell to a record low for the 3rd week in a row signaling all-clear… right? Just one thing, in a world entirely disintermediated by central banking largesse, just how relevant are these ‘market’ indications of financial stress? As Bloomberg warns, the financial stress index has now been below zero for 130 consecutive weeks, the longest period since 2008.
In the meantime, s’all good right?
Sowing the seeds of complacency as the market believes this can go on forever… it can’t!!
Chart: Bloomberg
via Zero Hedge http://ift.tt/1qHJuCj Tyler Durden