I don't know. This was very bad, nice summary here.
dailyspeculations.com
1. Of the 100 biggest markets around the world, almost all are down between 40% and 60% in dollar terms with the exception being Tunisia and Botswana. The impact of the decline this week, unless rapidly reversed, is going to be very severe on purchases. The previous 20% caused great angst; imagine what this decline will do to those who rely on retirements. The positive feedback of the decline in a negative direction also impacts the election results with every market decline making it more likely the Republicans will be blamed for the situation.
2. The worst thing about the decline this week from a health point of view was that fixed income around the world cratered, thereby reducing world wealth by a good 15% as opposed to the normal thing where the equities go down 10% and the fixed incomes go up 8 % leaving total wealth only down a little. The same people that talked about how bearish things were for stocks because commodities were up would never say that it's bullish because commodities are down 40% over the last 4 months.
3. A new word should enter the market vocabulary, a waterboarding decline, being a decline that seems to have a breath of life at the open before going into a death spiral.
4. Because of the decline in all sectors, the wealth/price ratio has stayed relatively constant with corn, copper, soybeans, wheat and oil down about 1/2 to 40% since June 30 thereby keeping the number of bushels and barrels we can buy with one DJI relatively constant, making the number of ounces of gold you can buy with the dow less than 10 for the first time a google, and looking like a bargain for dow. |
