Asia and EU crashing

[william the wie]

In the Far East the down turn is beginning to look like a repeat of the meltdown with a sequel bigger than the original. The EU is undergoing a watered down rerun of the PIIGS crisis. I doubt that the Dow will do well today but it does look like some safe haven trade action is likely.

 

[BuckToothMoron]

I think this is the second (February was the first) chink in the stock market armore. I said then, and I’ll double down on it now- the DJIA will see 17,000 before it sees 27,000. The fact that the Dow edged close to 27,000 recently but since then has given back more than 4% reconfirms my belief. Money printing and cheap money has turned into QT and rising rates which doesn’t bode well for stock futures, IMO.

 

[william the wie]

I'm making more on my spx put than I am on my increasing dividend yield issues. That is a bit bizarre

 

[william the wie]

I think this is the second (February was the first) chink in the stock market armore. I said then, and I’ll double down on it now- the DJIA will see 17,000 before it sees 27,000. The fact that the Dow edged close to 27,000 recently but since then has given back more than 4% reconfirms my belief. Money printing and cheap money has turned into QT and rising rates which doesn’t bode well for stock futures, IMO.

The one disagreement I have with you is that the US is the pick of the world's butt-ugly litter of economies and China is rapidly becoming the runt and that could cause some safe haven flight. But I suspect that will be a not very long-term head fake.

 

[DOTR]

Rising interest rates always eventually puncture the stock market. And we are coming off a binge of almost a decade of free money.
And there is only one way for interest rates to go. That’s up.
But I do think safe haven issues will put a bottom for us. Europe is toast. China too.

 

[william the wie]

Rising interest rates always eventually puncture the stock market. And we are coming off a binge of almost a decade of free money.
And there is only one way for interest rates to go. That’s up.
But I do think safe haven issues will put a bottom for us. Europe is toast. China too.

The possible problems with that highly probable scenario are many:

The current legalist regime in China is past its best if used by date by a big margin and when it falls into a warring states period nukes are available.

The Arab-Persian conflict is heating up and likely to go nuke as well.

The flight of jobs from the Blue Wall is not likely to slow down, because their is no route to recovery in sight.

The Ds are going to go ape over probable decisions that will be sustained by the Supremes.