Markets are in absolute freefall

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The news on markets around the world is particularly dire this morning. Despite a late day rally in the U.S., markets in Asia and Europe are down as much as 9 and 10% and S&P Futures are 60 limit down. This is going to be a very ugly day with market breakers likely to be tested and the Dow breaking through 2002 lows easily at the open.

As I had said I was getting bullish on particular sectors like energy and consumer staples, I deserve a big slap upside the head because all sectors are going to be hit today. While this certainly increases the bargains available for value investors, which is what I want, it is also certain to scare the bejesus out of most retail investors and I foresee some very heavy panic selling.
The crux of the matter is the dollar because this is the only thing that is now rising (except the yen). Gold is down over 3%, Brent crude is down over 6%, WTI crude is down 3%, agricultural commodities are down, and all currencies are getting killed against the dollar excep the Yen, which is absolutely exploding to the upside at 92 yen to the dollar.
The Danish are actually raising interest rates to defend their currency and the British Pound is down the most since 1971 in a single day — and that’s when we started having floating currencies. The Euro is down the most in a single day since 1999 – when it was created. This is absolute chaos. I have to repeat — absolute chaos. God help us.


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