We’re getting quickly oversold but these declines are long in the making.
Perhaps China is the tipping point but many other conditions have been accumulating for a long time.
These include weak emerging markets; the collapse in commodity prices; emerging geopolitical risks; massive increase in global debt now $57 trillion higher than 2008; low savings rates; changing central bank monetary policies; Chinese mal-investment schemes; strong dollar likely causing currency war and so forth.
So a perfect storm of bad news means investors are ready to hit the sell button.
In this instance investors will buy what they perceive as safe havens; gold and other perceived precious metals qualify.
Stocks sold-off hard again on Thursday given more overseas selling.
Market sectors moving higher included: Gold (GLD), Gold Stocks (GDX), Silver (SLV) and naturally, Volatility (VIX).
Market sectors moving lower included: Everything else.
The heat map from Finviz below reflects rising sectors including inverse issues (green) amid a sea of red.
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