With Argentina defaulting on a 539,000 bond payment, almost every stock dropped but a small handful. Dow is seeing lots of red today. After boasting about a great economic gain, Obama is back to 12/13 levels.
Cash is King. Europe is bringing down the industrial sector and earnings basically just suck. Big Pharma is down, Industrials are down, oil is down, and Social media nosedived as well.
The word on the streets is (according to economist Janet Yellen) that we’re looking at inflation. The market is and has for a long time been propped up by the fed. The problem is, the fed is playing Russian roulette. If the Fed skips a beat, we see the market drop. But today was a “Perfect Storm” between Argentina’s default, Germany’s poor performance for a third month and Janet Yellen saying the I word.
The only good news is that we didn’t see a rush to precious metals. Tomorrow’s close will give us better focus on what type of correction this is.