We’ve seen an almost complete reversal of market momentum, with the ‘deflation trade’ of late 2008 once again growing popular:
VIX Index Spike: Fear Reemerges on Sovereign Debt Downgrade
April 28, 2010 by Leave a Comment
Until very recently – as in, yesterday recently – there appeared to be little worth fearing in the stock markets. At least that’s what Wall Street’s “Fear Gauge” seemed to suggest. Cautious investors, of course, knew better than to trust their respective governments’ ability to do anything other than deepen and lengthen a crisis.
[Read more...]Equity Market Correction a One Quarter Event
February 8, 2010 by Leave a Comment
I believe equity markets (and riskier assets in general) are in the midst of a 10-15% correction that plays out within one quarter, which is normal, not at the onset of the next financial avalanche, which lasts many quarters.
There was never any question that the extraordinary policy maneuvers of 2009 would begin to be unwound in 2010. But the culmination of events in Europe, China and the United States over the last two months have brought this all to a head very early on in 2010. Profit taking after large, sustained bull runs is a natural reaction of investors to a bout of increasing uncertainty and higher risk recognition.
[Read more...]
Gold and Government Debt: The Only Two Things Going Up
Let’s see…what’s in the news today?
Stocks went down again yesterday. The Dow got trimmed by 96 points.
Gold, on the other hand, went up $3 to $1,245.
The first half of the year came to a close with the S&P 500 down 6%, global stocks down 10%, oil down 5%, Chinese stocks down 27%, the euro down 14%.
[Read more...]Click for detailed story