GIH: Stocks have begun their slide from their highs, in an expected sell-off accelerated by the EM Currency crisis and today's terrible ISM report. It wasn't complicated to see stock values couldn't last, but the question has been 'when' and 'how' - certainly the Fed's taper didn't help. The Baltic Dry Index has collapsed, an indication of what the real economy is doing. It's hard to imagine a scenario in this environment that would cause stock markets to continue their bull run.
It's not just Japanese stocks that are in trouble. The Dow Industrials futures just lost 15,500 - the lowest level since the debt-ceiling lows mid-November and down over 1000 points from 2013's closing highs. The terrible ISM print triggerd wholesale buying in bonds and bullion and selling of stocks and the USD. VIX has hit 20% this morning and credit markets still suggest the S&P is 60-70 points rich.
The Dow is down 1000 poinst from its highs...
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and below Debt-ceiling recovery lows...
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The Nikkei is getting nuked and now trades over 2,000 points from its highs and over 1100 points "cheap" to the Dow...
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Bonds are well bid... as is bullion...
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It seems the taper is dragging the US wealth effect lower faster than Philip Seymour-Hoffman's drug dealer's income.
