Late in 2015, Germany's Handelsblatt reported, erroneously, that Venezuela was the best performing asset class of 2015.

It wasn't. The reason this was in error is because if one adjusts the returns into the real currency exchange rate, one which reflects the true implosion of the economy, instead of the government "mandated" one, the result is very different, one which shows that contrary to popular wisdom, during hyperinflation stocks are not a good store of value.

Overnight weakness in global stock markets has prompted safety bids in Treasuries and precious metals but the last few minutes has seen a heavy volume spike in both gold and silver (above $1075 and $14 respectively)...

$1088 is perhaps the next target (50DMA) for gold and $14.46 (50DMA) for Silver.

Nations allied to Saudi Arabia have joined diplomatic action against Iran, amid a row over the Saudi execution of Shia Muslim cleric Nimr al-Nimr. Bahrain and Sudan have both followed Saudi Arabia and cut diplomatic relations with Iran. Bahrain has demanded that Iranian diplomats leave the country within 48 hours. The UAE has downgraded its diplomatic team and announced it is planning to cut the number of Iranian diplomats it allows to be in the country. The BBC reports: Saudi Arabia on Sunday gave Iranian diplomats two days to leave after an attack on its embassy in Tehran.

Over the weekend, a geopolitical black swan landed in the Mid-East where Saudi Arabia’s execution of a prominent Shiite cleric set in motion a series of events that led Riyadh to sever diplomatic ties with Tehran.

Protests broke out almost immediately after news of Sheikh Nimr al-Nimr’s death hit the wires. Tensions reached a boiling point on Saturday evening in Tehran where demonstrators torched the Saudi embassy. In Bahrain, angry Shiites burned tires and confronted riot police who used tear gas to disperse the crowds.

It didn't take long for the momentum-chasing fundamental strategists to readjust their immediate stock price targets on the heels of the i) failure of the Santa Rally and ii) the worst start to the year in Chinese stock market history.  Case in point, moments ago JPM's equity strategy team released its first note for the year in which it says that "we take the view that equities are unlikely to perform well on a 12-24 month horizon" adding that "the regime of buying the dips might be over and selling any rallies might be the new one."