Out of 43 major market indexes, only Sri Lanka didn't fall yesterday. People have been comparing it to Black Monday. Everyone is all of a sudden worried about a recession in the United States. I heard one market strategist genius say that the market was trading on sentiment. Silly me. I thought that the market always traded on sentiment.
The Fed is attempting to come to the rescue with an emergency 75 basis points rate cut. I think that this may be to little too late. As Andrew Leonard has observed, the Fed pushed the panic button.
I am very grateful that I've put on some hedges in the last month, but they've only taken a bit of the sting away. I believe the drop in the U.S. markets today is a buying opportunity for both traders and investors alike. I like Japan even more at these prices.
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