MONDAY MARKET BLOODBATH - A quick summary
Summary of Monday events in financial markets
You have probably heard about the global market turmoil happening today. Here’s a quick summary of the events:
1. S&P 500 dropped 2.9% and erased $1.4 trillion in Market value, the worst day since September 2022.
2. VIX was up as much as 190% intra-day, 3rd largest spike in history after the 2008 Financial Crisis and 2020 COVID Crisis but finished the day 'just' +58%.
3. Nasdaq 100 was down as much as 6% intra-day but managed to bounce and ended the day down 2.9% erasing $900 billion in market cap. Overall it is 13% below its all-time high - correction territory.
4. Magnificent 7 stocks are down a WHOPPING $3 trillion in market value from their record highs.
5. NVIDIA is down 28% from its peak and lost over $1.1 TRILLION in market cap.
6. The Japanese Government's gross size of its balance sheet is $20 trillion or 505% of the Japanese GDP or 72% of the US GDP - a gigantic carry trade.
7. The Nikkei 225 index just saw the largest 2-day drop in the ENTIRE HISTORY of 19% and fell into a Bear Market.
8. Circuit breakers were seen in Japan, South Korea and Taiwan
9. USD/JPY is down 1.8% today and 13% over the last 5 weeks.
10. Bitcoin and Ethereum were down 9% and 20%.
We are witnessing massive moves in the markets and some major indexes are near entering a bear market.
Remember, however, even bear markets experience abrupt and massive rallies.
In other words, we will see more volatility on both sides going forward. Buckle up.
How did I position myself in this volatile environment? Defensively. Founding Members have been updated with my portfolio in July:
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