Well, what do I know; except that there was a lot of reversal today from the losing side to the positive.
This includes many of common equity sectors of both the U.S. and some Euro area funds (which are U.S. etf traded).
Ah, probably just the 70% of the machine trades that hit some downward buy algo.
So, Asia area should open well; except perhaps China mainland.
Lastly, as expected; investment grade bonds retained their strength.
Hang in there.
Catch
Comments
Still settling out here.
I mean, the fact that nearly half an index is suspended while an index is positive YTD is utterly absurd but here we are.
Commodities appear to signaling a severe global recession. "Bottomless Pit" as of late. In hindsight, the drop in oil prices nearly a year ago may have been a precursor to what we're seeing in China now.
I'll be surprised if the Asian conflagration doesn't spread to the U.S. equity markets unless halted soon.
I'll be surprised if the Fed doesn't try to plug some holes in the dike soon with appropriate FedSpeak and some retrenching on plans to raise rates.
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Catch - I don't think you can read much into the day-to-day meanderings of U.S. equities. 100-point swings on the Dow amount to very little at these levels. And, I hope you held on to your bonds. Might come in handy soon.
YTD
+492.44 (15.22%)
1 Month
-1295.98 (-25.80%)
3 Month
-234.26 (-5.91%)
6 Month
+376.60 (11.24%)
1 Year
+1667.75 (80.98%)
Oh, I recall very clearly the multi-100 point swings in U.S. equity markets in the fall/winter of 2007 and early 2008 when many of the "pros" were still yelling all is well in "investment land".
Yes, still have about 40% bonds with the vast majority of investment grade. Sold all of the direct high yields last year. 'Course, the IG stuff has been flat and more so far this year, except as of the last week or so. May have to swing some equity back into more IG if things get too stinky.
Hey, take care up there and knowing you'll enjoy the summer months.
Catch
Just arrived home at 10:30pm to check stuff..........yikes
And yes, the China index still has a wonderful 1 year term return. 'Course, from my recall; the leaders of China still want about 7% annual growth. Don't know, perhaps they think they have found the magic economic formula.
Related to your notice about the China situation: a short write, a few charts and twitter feeds:
http://www.zerohedge.com/news/2015-07-07/china-futures-plunge-8-over-half-stocks-suspended-margin-debt-crashes-most-record
The next few hours are going to tell the story. Tomorrow will be interesting.
Keep a watch for us. Have to arise at 6am and to bed I must go now !