The Fed starts to shrink the balance sheet

As mentioned or aluded to elsewhere in this blog, I think we are on the cusp of many turning points in the political economy, which will open the door to the so called fourth turnign phase. The Fed shrinking their balance sheet is one of the key ones. 

EM is losing money almost every day and the Fed has only just started shrinking its balance sheet, so far a lot less than $50bn a month.

Some other markets showing topping signs. I think EMBI and US high yield total return so far the credit spread widening has been masked by a bond rally.

The floating rate ETFs yield little.