What I Learned This Week

Sixty-percent of the global equity markets have formed a 'death-cross.' More and more global markets and sectors are breaking down. What does it mean?

Is this trade-war related? Has the Fed caused a serious economic slowdown by withdrawing too much liquidity? Is the devaluation of the Chinese RMB causing global deflation, as we have warned repeatedly might happen since June? History shows that this kind of market breakdown in due course spreads everywhere, and in the end, no market remains immune. The U.S. stock market has been held up by a few large tech stocks - and it could be dangerous to believe that they can ride this out unscathed. (Witness the breakdown in Tencent Holdings this week on its first earnings decline in ten years, the 20% decline in Facebook a few weeks ago and the ongoing fall in Netflix, which is down 22% from its sum…

Want to read more?

Subscribe Today

Already a subscriber? Login here.