Yesterday's selling was eerily broad based. Every sector was deep in the red, and the usual safehavens, gold and Treasuries, both declined as well.
It's easy to find something to blame the selling on ... fighting in Ukraine or Gaza, increased sanctions, European deflation, Argentina's default, Portugal banking worries, US inflation concerns, poor earnings and guidance from major companies like Adidas ... take your pick.
With so much action it's difficult to figure out what matters and what doesn't. Every event plays a role since it affects the psyche of investors, but what are the dominant themes? Here's my take, for what it's worth.
While we were deep in the midst of unprecedented QE, a market dynamic evolved where positive economic data became "bad news" for the market and poor economic data became good news. The dominant mindset was that the markets were being supported entirely by QE, and any cessation or withdrawal of ... Log in or subscribe to continue reading.
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