Another day, another fresh all-time record low in The Baltic Dry Index as Deutsche Bank's "perfect storm" appears ever closer on the horizon. Plunging 4.7% overnight to 445 points, this is 20% lower than the previous record low in 1986 and as one strategist warns, "It’s a brutal start of the year, there’s just nowhere to hide on the market."
Submitted by John Rubino via DollarCollapse.com,
One of the (many) fascinating things about this latest global financial crisis is that there’s no single catalyst. Unlike 2008 when the carnage could be traced back to US subprime housing, or 2000 when tech stocks crashed and pulled down everything else, this time around a whole bunch of seemingly-unrelated things are unraveling all at once.
"2015 was unsually poor."
That's how Citi's iconic credit strategist Matt King begins his latest report, starting with a chart we have shown previously, namely that total returns across most asset classes in 2015 were downright miserable - "near zero or worse" - and that as a result the active manager comunity was humiliated to a degree not seen since 2008, especially in the high yield space, where as we know, several liquidating mutual and hedge funds were forced to gate over the past month.
Remember 'The Santa Claus Rally' that Bob Pisani said "we should expect" - well The Dow is now down over 1200 points from the highs just before the end of the year and extending those losses as Reuters reports, PBOC advisors are said to call for steeper yuan depreciation, pressuring the government to depreciate by 10-15%.
Dow collapse...
As all major US equity indices are in free-fall since the start of December...
Submitted by Lance Roberts via RealInvestmentAdvice.com,
China Matters
Over the past few days I have repeatedly heard the following statement:
“China isn’t that important as it is only 7% of the U.S. economy.”
While that may be a true statement in relation to the economy, it is a far different matter when it comes to the financial markets.