Very few are connecting the dots of the convergence of the many risk factors that will likely create another global financial crisis. Let’s connect them…
In our latest video update, we consider the performance of markets in a volatile October. Stock markets globally fell sharply while gold acted as a hedge in all currencies, rising 1.7% in dollars, 4.4% in euro terms and 4.2% in sterling terms.
Many political, economic and financial risks have been ‘bubbling’ away under the surface and were being ignored as risk assets, especially U.S. stocks, kept marching higher.
As financial markets fell in October, these risks came to the fore and became harder for the media to ignore.
Yet still very few have “joined the dots” and considered how the confluence of these many risks will likely create another global financial crisis…
Stocks Fall Sharply in October
Asian shares as represented by the MSCI Asia Pacific Index have entered a bear market. Many Asian stock indices, including China, fell into a bear market last week amid the global sell-off and China is down a large 30%. Japan and Australia are down nearly 15% from recent peaks
From their 52-week highs, FANGs are down sharply:
The FANG index is now in bear market territory…
The S&P 500 is just short of a 10% decline from its record September high and remains on pace for the worst month since 2009. It has fallen from a record high of 2930 to 2640. In October alone, the S&P is down 7.3%.
Is this a correction or the start of a bear market or crash? Our money is on one of the latter two.
Property Falls Continue
House prices ‘falling by over $1,000 a week’ in Sydney and Melbourne, Deloitte says
Property asking prices slashed by £26,000 as UK housing market slows down
-In London, 39.5 per cent of property listings have been reduced in price
-Kensington and Chelsea registered the biggest drop in cash terms with an average discount of £127,394.