Looks like Lacey Hunt was on to something. 10Y Treasuries are rallying and the dollar is dropping like a rock. World wide markets dropped. There are many catalysts, though I believe the underlying economics are the root cause:
- Major Hurricane will strike Florida. Banks and insurance companies will get hit.
- North Korea is a source of major uncertainty.
- Fed has stopped raising. Next move will be to bring back QE.
- Debt ceiling was raised. There will be no serious action on the budget until 2019.
The chart pattern for stocks still looks grim. As always, I recommend selling half and moving to safety for now. If I’m wrong, the other half will participate in any rallies, and your safe money will earn 1%.