Aside from temporarily hating all stocks, I see is one small silver lining. Stocks are down and yet, bonds (in particular the 10yr) are down! This is potentially huge. I blogged yesterday about watching when the market does not do the expected and this classifies in that heading. Bonds and Stocks have less than a -70% correlation. If we see that breaking down, that could signal that the "flight to safety" that it represents is breaking down a bit. At some level of stock valuation, the market will not want to hold bonds. Of course it could also mean the decline of the US led world - but, I do not think that is the case :)
Just a data point, but let's keep an eye on it.
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