Seems the Bubblicious prediction has popped all too true!
Many major markets are down to their lowest levels since summer 2012, with the more telling fear gauge of the Vix..long slumbering through the peaceful rise of the global indices for the last 24mths..now reaching its highest levels not seen since worries dominated of the collapse of the EU!
My how things change so rapidly...Will Alibaba be remembered as the peak of the market (another prediction) where we trusted those wily central bankers and oh-so-trusting-looking financial "experts" that we were past the worst of the economic troubles and gliding towards a golden conclusion of fun, happiness and profitable investments. We will surely ponder the remarkably calm manner in which we dealt with stubbornly high unemployment numbers, fledgling recoveries across the major economies and stuttering growth of the emerging powerhouses (longingly looked at for some respite from the gloom of the OECD), naturally all now claiming to "have seen it all coming". Well guys, unless you wrote it down and published it, as well as stood by your prediction in the face of the naysayers..it does not count..so allow me the "I told you so!"
Volatility in markets is always welcome - it allows those that were not invested to take advantage of temporary mispricings and the swifter of foot to generate some decent returns with high-volume trading (brace yourselves for the fall-out of surely what has been some seriously risky trading by some hedge funds in the last couple of weeks..desperate to justify their infamous, increasingly exorbitant fees of 2 and 20) and all of us to remember just how incredibly important zees Germans really are!...major falls across the indices were accelerated to the now dangerous looking "correction" territory only when Germany's growth figures and export prowess came into question.
As we continue to battle ISIS, deal with the incredible ineptness shown by the powers that be in so far dealing with EBOLA (pray it does not mutate into an airborne contagion)..we will all continue to question whether we really should be shaking hands with someone that presents flu-like symptoms and - if like myself - you should find yourself sitting on a plane whilst sneezing and feeling a little under the weather..not be too insulted when the passenger seated to your right politely makes their way to the back of the plane..ouch. Little do they know of course that, unless you are flying in the hermetically sealed first class cabin on Etihad's new planes, we are all breathing the same air!
Given the state of the rapid fall in global markets, does not seem anyone is coming up far any air at all anytime soon. Yet, hold your breath, disinfect those hands at every opportunity, and get ready to enter a period that presents a fantastic market buying opportunity - oh doesn’t it feel good to cleanse?!
Plenty more to discuss....
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