Sunday, November 15, 2015

Is The Global House Of Cards Finally Going To Collapse?

“These two markets are of course inextricably interrelated. We price the Dow Jones, S&P 500, and, for that matter, every individual stock in terms of the dollar. The dollar is the measuring stick by which market participants state their individual subjective view of the value of every stock. But valuations are less important now than the need for liquidity.

Because of all the leveraged bets, investors have had to sell stocks to keep their heads above water. But with prices in Asia heading lower to begin this week, a global slide in prices is the result.

It is noteworthy that the dollar fell yesterday along with the stock market. We are seeing a rush for liquidity as stocks head lower, but yesterday’s weakness shows that the dollar is losing its position as the currency of choice."

- James Turk via King World News