Loading ...Wow, what just happened? As always, the first thing I do when I wake up is check on the dollar (the real opened at BRL1.8200 per dollar). Today, that dollar was going down practically against everyone. That was very unusual, typically, when the dollar drops, it strengthens against the Yen, but not today. Just by what the dollar was doing I assumed the stocks were up big pre market, yup I was right. When I saw how hard the dollar was dropping, I got a sudden urge to take a dump. So now I sit here pondering why did the stock market drop 200 points in those 20 minutes?
It suddenly dawned on me, it’s simple. The other countries around the world are recovering faster than we are. Germany second quarter GDP was positive and beat expectations. Emerging markets which depend on high commodity prices are on fire. In addition, they are also using less stimulus, less market manipulation (Fed programs), and have less system debt.
I hate to admit it; by I’m very bearish today. Not because of what equities will do (the market) but because how the US economy will perform when compared to others. Every day the market was up the dollar was down. Although this is meaningless to most Americans who have never traveled outside of the US, for me, it is painful.
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