Tapering

Is tapering tightening? This charts seems to correlate well:

US Equities

Uh oh- record flows into US equities- coincides with one of the best first nine months ever for the S&P

Financial stress

I was surprised how subdued this indicator is. It’s the St Louis Fed stress index and given the back up in bonds I would have expected it to be higher. Perhaps it suggests markets are being a little too complacent (Barry ritholtz thinks its the opposite- who am I to argue with Barry?)