Shell shock from Asian exchanges continues to spread to the U.S. market. On Wednesday, the Dow dropped 248 points to close below 15,800 and the broader S&P 500 lost more than 1%. That puts the index down nearly 10% for the year so far, and down just over 14% from the previous 52-week high that was set in May last year. The Volatility Index, which measures the market’s mood based on sophisticated traders’ positions in options contracts, has recently jumped to nearly 30, about twice its normal reading. #-ad_banner-#That’s a wrap-up of what you’ll hear on the financial channels. And… Read More
Shell shock from Asian exchanges continues to spread to the U.S. market. On Wednesday, the Dow dropped 248 points to close below 15,800 and the broader S&P 500 lost more than 1%. That puts the index down nearly 10% for the year so far, and down just over 14% from the previous 52-week high that was set in May last year. The Volatility Index, which measures the market’s mood based on sophisticated traders’ positions in options contracts, has recently jumped to nearly 30, about twice its normal reading. #-ad_banner-#That’s a wrap-up of what you’ll hear on the financial channels. And that coverage misses the point. I’ve been sounding the alarm bell about China for a while now, and with such rampant uncertainty about the fallout — when and where it will end and how far it will fall — the global picture is probably going to get worse before it gets better. But here’s what you need to keep in mind. Here is what no one else is going to mention… The mainstream financial media is there to broadcast a story. I’m here to temper their adrenaline with a little hyper-rationality. A critical element of successful investing — and one… Read More