Spamdex - Spam Archive

Report spam

Send in your spam and get the offenders listed

Create a rule in outlook or simply forward the spam you receive to questions@spamdex.co.uk

Also in e.moneyandmarkets.com

Global Meltdown! Why, How and What's Next ...

Monday, August 24, 2015
Money and Markets
YOUR BEST SOURCE FOR THE UNBIASED MARKET COMMENTARY YOU WON’T GET FROM WALL STREET
You can also access this issue on our website.
Global Meltdown! Why, How and What's Next ...
Market Roundup
Dow -588.47 to 15,871.28
S&P -77.66 to 1,893.24
NASDAQ -179.79 to 4,526.25
10-YR Yield -0.057 to 1.997%
Gold -$6 to $1,153.60
Oil -$2.16 to $38.29

By Mike Larson

A global meltdown. That’s the only way to describe the last 24 hours worth of market action.

The carnage started in the Middle East, where markets open first on the weekend. Then it spread to Asia, Europe, and now, the U.S. While the Dow Jones Industrial Average managed to rally from down-1,100 or so in the early going, it couldn’t hold all of those gains. The benchmark average ultimately closed off another 586, bringing its three-day losses to almost 1,500 points.

Meanwhile, the Nasdaq Composite plunged 3.8% … the S&P 500 tanked to its lowest in 11 months … and the VIX gauge of volatility soared as high as 53.3. We are now firmly in “correction” territory, with all major averages off 10% or more from their highs.

Why is this happening? Is the selling just about over? What should you do now? Let me share my thoughts …

First, the “why”: Global markets have been under pressure for some time due to slowing economic growth, falling commodities, a rising U.S. dollar, and political instability. Major indices in many emerging market countries have dropped by 20%, 30%, even 50% or more in the last year.

Markets throughout the world were in turmoil.

The U.S. averages held up until recently, at least on the surface. But behind the scenes, many stocks and sectors have actually been deteriorating since the spring. I’m not just talking about obvious ones like energy, but also materials, transportation, and industrials.

More recently, some technology and financial stocks have joined the selloff. And over the last several months, the bond and currency markets have been signaling increasing trouble, even as stocks continued to hold up. That’s similar to what happened during the credit crisis.

Second, “Is the selling over?”: Markets look ugly in the U.S. right now, no doubt about it. But as I said earlier, there are stock markets all over the world that have lost as much as half their value in the last year. Some countries have also seen their currencies take out the panic lows of 2008-2009. In a couple isolated cases, they’ve plunged to their lowest levels since the 1990s – or ever.

Also, as I noted, the domestic bond market has been signaling that all is not well behind the scenes for some time. The spread between where risky bonds and stocks were trading recently widened out to a near-record level. Historically, that’s a major red flag for stocks because bond investors are considered the “smarter money.”

Bottom line? As bad as these last few days have been, we could be in for much more selling over time. That’s because domestic stocks could easily play “catch down” to currencies, bonds and overseas markets.

Third, “what to do now”: If you add today’s losses to the losses from last Thursday and Friday, you’re talking about one of the largest three-day routs in history.

As a result, we are getting dramatically oversold and sentiment is getting hugely negative in a hurry. That’s typically what you see before a short-term bounce, especially if the U.S. Federal Reserve or foreign central banks intervene to stop the bleeding. I wouldn’t be surprised in the least to see a rally – and possibly a large one – soon.

“As bad as these last few days have been, We could be in for much more selling over time.”

But given how severe the turmoil has been in several overseas markets … how serious the divergences between many stocks and the broad averages has gotten … and how worrisome the signals from the bond market have become, you can make a credible case that we’re nowhere near done with this selloff in the longer term. It’s even possible that the long bull market that began in March 2009 is over for good.

Fortunately, here at Weiss Research and Money and Markets, we have four paid services – covering specific sectors — that have warned of the impending selloff and helped subscribers to not only protect their wealth, but to profit from the turmoil. They include my Interest Rate Speculator, Larry Edelson’s Supercycle Trader and Real Wealth Report, and Jon Markman’s Tech Trend Trader.

As a matter of fact, each of these services have delivered strong gains for their readers during this tumultuous year.

In the meantime, keep your eyes on Money and Markets for all the latest updates. I promise you that we will get through this together, and that the Weiss team will do absolutely everything in our power to guide you to greater profits and protection — no matter what the markets throw at us.

Meanwhile, please do share your observations on the current market activity, the risks and opportunities out there, and what you’re doing in your own portfolios at the website. Your fellow investors will appreciate your opinions, and I will too.

Until next time,

Mike Larson

 

Mike Larson
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
The investment strategy and opinions expressed in this article are those of the author's and do not necessarily reflect those of any other editor at Weiss Research or the company as a whole.

For more information and archived issues, visit www.moneyandmarkets.com.

Facebook Twitter Linkedin YouTube Pinterest

Money and Markets is a free daily investment newsletter published by Weiss Research, Inc. This publication does not provide individual, customized investment or trading advice. All information is based upon data whose accuracy is deemed reliable, but not guaranteed. Performance returns cited are derived from our best estimates, but hypothetical as we do not track actual prices of customer purchases and sales. We cannot guarantee the accuracy of third party advertisements or sponsors, and these ads do not necessarily express the viewpoints of Money and Markets or its editors. For more information, see our Terms and Conditions and Privacy Policy.

To make sure you don't miss our urgent updates, just follow these simple steps to add our email to your address book. Would you like to unsubscribe from our mailing list?

Attention editors and publishers! Money and Markets teaser content may be republished with a link to the full story on MoneyandMarkets.com. Such republication must include attribution with a link to the MoneyandMarkets home page as follows: "Source: http://www.moneyandmarkets.com"

Money and Markets
A Division of Weiss Research, Inc.

4400 Northcorp Parkway, Palm Beach Gardens, FL 33410 | 1-800-291-8545


---------------------------

All titles, content, publisher names, trademarks, artwork, and associated imagery are trademarks and/or copyright material of their respective owners. All rights reserved. The Spam Archive website contains material for general information purposes only. It has been written for the purpose of providing information and historical reference containing in the main instances of business or commercial spam.

Many of the messages in Spamdex's archive contain forged headers in one form or another. The fact that an email claims to have come from one email address or another does not mean it actually originated at that address! Please use spamdex responsibly.


Yes YOU! Get INVOLVED - Send in your spam and report offenders

Create a rule in outlook or simply forward the junk email you receive to questions@spamdex.co.uk | See contributors

Google + Spam 2010- 2017 Spamdex - The Spam Archive for the internet. unsolicited electric messages (spam) archived for posterity. Link to us and help promote Spamdex as a means of forcing Spammers to re-think the amount of spam they send us.

The Spam Archive - Chronicling spam emails into readable web records index for all time

Please contact us with any comments or questions at questions@spamdex.co.uk. Spam Archive is a non-profit library of thousands of spam email messages sent to a single email address. A number of far-sighted people have been saving all their spam and have put it online. This is a valuable resource for anyone writing Bayesian filters. The Spam Archive is building a digital library of Internet spam. Your use of the Archive is subject to the Archive's Terms of Use. All emails viewed are copyright of the respected companies or corporations. Thanks to Benedict Sykes for assisting with tech problems and Google Indexing, ta Ben.

Our inspiration is the "Internet Archive" USA. "Libraries exist to preserve society's cultural artefacts and to provide access to them. If libraries are to continue to foster education and scholarship in this era of digital technology, it's essential for them to extend those functions into the digital world." This is our library of unsolicited emails from around the world. See https://archive.org. Spamdex is in no way associated though. Supporters and members of http://spam.abuse.net Helping rid the internet of spam, one email at a time. Working with Inernet Aware to improve user knowlegde on keeping safe online. Many thanks to all our supporters including Vanilla Circus for providing SEO advice and other content syndication help | Link to us | Terms | Privacy | Cookies | Complaints | Copyright | Spam emails / ICO | Spam images | Sitemap | All hosting and cloud migration by Cloudworks.

Important: Users take note, this is Spamdex - The Spam Archive for the internet. Some of the pages indexed could contain offensive language or contain fraudulent offers. If an offer looks too good to be true it probably is! Please tread, carefully, all of the links should be fine. Clicking I agree means you agree to our terms and conditions. We cannot be held responsible etc etc.

The Spam Archive - Chronicling spam emails into readable web records

The Glass House | London | SW19 8AE |
Spamdex is a digital archive of unsolicited electronic mail 4.9 out of 5 based on reviews
Spamdex - The Spam Archive Located in London, SW19 8AE. Phone: 08000 0514541.