The market craziness continues, with stocks down, commodities crashing, and bond yields rising. As usual during such periods, wild theories about what’s happening abound: The U.S. recovery is a mirage; China is having a Lehman Brothers-style meltdown; etc.
Here are four things you need to know about what’s really going on. The next few days and weeks will be a mad market scramble that doesn’t reflect what’s happening in the underlying economy. The Fed’s recent announcement that it will start scaling back asset purchases has sent everyone scurrying to get rid of riskier assets or assets that are perceived to be dependent on quantitative easing (emerging market stocks, hot-money commodity plays, any companies that are particularly sensitive to interest rates). Hold tight – we’re in for a summer of volatility but the underlying global growth story hasn’t changed that much………………………………………..Full Article: Source