Stocks: Perspectives On The Selloff

Global stock markets took a beating this week. U.S. stocks were part of the sharp decline including the benchmark S&P 500 Index, which unlike its global counterparts has been remarkably resilient up to this point. But given the pace of the sell off this past week and particularly over the last two trading days on Thursday and Friday, it’s reasonable to consider what we might expect from here.

Please click on the link to read more of my article on Seeking Alpha.

WWJD?

The China stock market has plunged into a tailspin. After rising an extraordinary +150% over the past year, the Shanghai Stock Exchange Composite Index has fallen by nearly just as notable -30% in the past three weeks. Despite the fact that China stocks are still +80% higher than they were just one short year ago, the recent sharp plunge has compelled Chinese policy makers to fire all of their stimulus and liquidity guns in a frantic attempt to stem the decline. How the recent market chaos in China ultimately plays out remains to be seen, but the response by Chinese policy makers in recent weeks raises and worthwhile question. What would U.S. Federal Reserve Chair Janet Yellen do if the S&P 500 Index was falling by -30% in similarly short order?

Please click on the link to read more of my post on Zero Hedge.

What To Do As Greece Crosses The Rubicon

For Greece, the clock is ticking precariously close to midnight. Perhaps the dial has even wound past the terminal hour. But as the new trading week begins, investor hopes of a clean resolution to the policy standoff between Greece and its European creditors have been all but dashed. Conditions could get potentially messy for investment markets in the coming days. As a result, it is worthwhile to have a well-considered strategy in place as events unfold in the coming days.

Please click on the link to read more of my article on Seeking Alpha.

Anticipation Is Worse Than Reality

We have seen this story before in the post crisis period. Bond yields start rising amid the swelling expectation that any of the following events are soon to take place: a long awaited sustained economic recovery, a sustained rise in inflationary pricing pressures, and/or a sustained rise in central bank interest rates. During each past episode, interest rate segments of capital markets struggle with the anticipation. But once the eventual reality finally sets in, these segments suddenly find themselves rallying and more than making up for any lost ground in the process. Today, investors once again find themselves experiencing the latest act in this repeated performance. And it is likely that events will play out similarly this time around too.

Please click on the link to read more of my article on Seeking Alpha.

Bond Rout: Time To Run Or Time To Buy?

The global bond market has been taking it on the chin lately. After reaching historic lows in many parts of the globe only a few weeks ago, bond yields have suddenly exploded higher. This sharp and sudden move has raised questions as to whether we are finally arriving at the point where the long anticipated global bond market correction is finally about to get underway. But while the moves have been big in recent weeks and investors are right to be paying close attention, another question that investors may also be well served to consider is whether it may soon be a good time to buy following the recent pullback.

Please click on the link to read more of my article on Seeking Alpha.

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