Markets in Turmoil... why?
What to make of today's action, and how to position.
Today's opening was... extraordinary.
In fact, it was historic:
The S&P 500 volatility index, the VIX, printed its third highest point in history at the open, only behind the heights of both the Great Financial Crisis and the Covid Panic.
Major indexes fell huge, with the Nasdaq opening the day down nearly 6%.
The damage was all around, with no sector in the green, matter of fact, no asset class was in the green at all, stocks, oil, gold, silver... except bonds, but we'll get into that later.
So why did this all happen?
Markets had already been following as recession fears began to creep back into the minds of traders, peaking on Friday after the July jobs print missed badly to the downside, indicating a slower jobs market.
But that move and today's is, in our eyes, absolutely unrelated.
Here's the real reason behind today's historic panic...
