It’s a “rout” in stock markets around the world, or at least that’s what many are calling it. Emotional, over-blown panic selling is what I’d call it. Asian, European, N. American equities – all sharply lower today.
The culprit(s) remain the same: Fear over recession and deflation, in the form of new lows in oil prices and reaction to Fed Chairwoman Yellen’s recent comments.
Again, there’s not really anything new, just continued nervousness and concern about the degree of the developing recession and how that will impact the financial system. 2007-2009 was very ugly and avoided a full financial meltdown by the hair of its chinny-chin-chin. Folks are worried that this time it may not dodge the big bullet.
That, in turn, is prompting an accelerating run to safe haven investments, most notably gold. It is up $50 today to the highest level in a year. The precious metals markets, again mostly gold, are now quite overbought. But as yesterday’s ... Log in or subscribe to continue reading.