It is now the largest decline in a decade. Big Woop. It’s a fart. The index was up way over 120 percent last year.
No doubt, trend followers like myself are hurt on days like today. That’s why I have a dog :) .
As I wrote this morninbg, it’s the move in Gold and the Dollar that really matter. There is so much fluff out there and the gains have been so huge in equities that this is just an air pocket in equities.
Gold is now pretty much unchanged although the stocks are shellacked and the Dollar is getting smoked. In the old days, the US dollar would rally hard on days like today. That is the NEWS. Rates are plummeting in the US as well. Interesting days for the US indeed.
On big news days, focus on the dollar and rates for what is really happening. That is where the real money plays.
Days like today’s should serve as a reminder that risk is part of the equation. I used to fear these days, now I embrace them. It’s how you learn.
By the way – Trading Curbs are for wimps!!!!
do you actually have any thoughts on that? i was very confused to see that the dollar was down. typically a recession increases its value while economic growth destroys the currency. this makes me think that i might be lucky to have the majority of my portfolio in metals/miners.