What’s Next After A Week Of Terror, Desperation And Total Chaos
KingWorldNews.com
January 17, 2015
After a wild week with gold and silver markets soaring and major turmoil in markets in Europe and across the globe, one of the great minds in the business sent King World News a timely piece that takes a look at what’s next after what quickly turned into a week of terror, desperation and total chaos.
“Today (Friday) is what it looks like when big money gets sucker punched on an enormous, international level. For old timers it’s good theater. For newbies it’s a terrifying introduction to chaos theory as it relates to investing. This is now officially a Very Important Day.” Jeff Macke, Yahoo Finance
By Jeffrey Saut, Chief Investment Strategist at Raymond James
January 17 (King World News) – Admittedly, sometimes when I sit down to write these commentaries I really have to rack my brain and scour the Internet to find interesting themes to discuss. The blank screen is a perfect companion to my still blanker mind, the flashing cursor mocking me as the minutes tick by with no progress made. Since our memories tend to skip from one event of importance to another, it’s easy to forget that the normal course of market action is very often boring and on the opposite end of the spectrum from noteworthy.
But then there are days like yesterday, when I woke up to the news that the Swiss National Bank discontinued its minimum exchange rate floor for the Swiss Franc against the Euro and then witnessed the global impact this news had on world markets. To say the least, I knew we were in for an interesting day and came into the office with more than a little trepidation since I had no idea how the U.S. equity markets might respond. And apparently I wasn’t the only one a bit confused, as futures see-sawed back and forth in the early morning hours, at one point falling over 2% from the previous day’s close before, thankfully, recovering. No doubt, many traders and funds were on the wrong side of the Swissie swing and were either wiped out or saw their portfolios severely damaged, with stop loss orders providing little protection in such a fast-moving market.
The Rest…HERE
