Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more about the Early Look.

CHART OF THE DAY: Blackhole Of Risk - zbla

The largest blackhole near the Milky Way is argued to be M87.

Not to be confused with the last time “US Stocks” had a “great start to the year” (the only JANUARY better than this year’s was 1987’s), M87 is still massively hugely big. The equivalent of that, in market risk terms, was obviously another Quad 4 my risk management #process called (2008). 

As you can see in today’s Chart of The Day, this is how we measure and map the mother of all globally interconnected markets risks: 

  1. X-axis = Treasury Bond Market Volatility (The MOVE Index)
  2. Y-axis = High Yield OAS Spread
  3. Dots (in years) = are sized for the % of Corporate Credit as a % of GDP 

CHART OF THE DAY: Blackhole Of Risk - Chart of the Day