Asian Markets Have Destroyed Themselves; Europe is Next, Then Us

Stocks that trade in Hong Kong are lower by 727 points, like the fucking airplane, almost 4%. The NIKKEI is sliding another 500; crude is off by 3% to $27.56 and Dow futures are off by 250. The Yen is higher by 0.55% v the dollar, indicative of a carry-trade unwind. The very worst of the worst sentiments prevail this evening, an evening after U.S. markets failed to follow through on an early rally, collapsed, and then tepidly limped into the closing bell.

Markets are off by 10% in 11 trading days.

The last time stocks performed this poorly was in January of 2009, which led to an absolute raucous rout in February, lower by 10.74% for the SPY. To say the general economy isn’t affected by the destruction of wealth found in equity and bond markets is absolutely stupid. I recall these same sentiments being spewed by Steve Liesman and others in 2008, as the housing crisis gripped markets. Hindsight has a funny way of obfuscating the past. You hear people talk about 2008 as if it surprised everyone. Not fucking true. Anyone who was paying attention saw the signs and took measures to protect his/her portfolios. I hate to rain on your money gathering, asshole advisory business, ways– but simply waiting out the market and hoping it will cooperate over the next 30 years is asinine. Clients don’t want to draw down 40%, in order to build long term wealth.

Aside from my directional position in SPY, I have a large TLT position that will remain constant throughout 2016. I won’t even bother stock picking, as I view it to be fruitless escapades in degenerate gambling. Stocks should be traded now. This isn’t a time to build positions “for the long term.” I do not believe it is the duty of advisors, or self directed investors, to simply ignore category 5 tornadoes barreling into town–hoping the cows and cars in its vortex won’t smack you about the cheek and gums.

Get flexible, you tie wearing morons.