Seems Obvious

Jack noted it yesterday: the consensus anticipated a sell-off in stocks. I certainly didn’t disagree with all the headlines – indeed, over the last two weeks I’ve been harping on the potential (read: need) for stocks to sell off. But I do agree with Jack’s point that it’s not always a good thing when you find yourself in the same predictive position as mainstream analysis.

Either way, the market talked about the potential for a sell-off yesterday and that’s exactly what we got. Not surprisingly the risk dynamic remained in play – the commodity-dollars sunk; the European currencies forfeited ground to the buck; the Japanese yen took solace in the risk-averse money flow.