The time, when 6 months ago, I warned about in my posts that the world Markets will come to a screeching halt along with the American Markets, Well that time in my view is here.
Amongst the many signs, One is the fact that the CME Futures Exchange needed an intervention today, which is a very rare thing to have, because the extra ordinary heavy volume of S&P 500 eMini contracts, which is out of the ordinary selling, caused it to drop 1.8% right from the opening. 1.8% to pakistani investors may mean nothing much but a 1.8% drop in the futures right from the opening bell is a sign of panic.
Another sign is that DOW JONES has given up all its gains of 2018. As of today. The market had dropped 1300 points plus just in two days. Earnings growth is slowing as I had expected. The related companies to Apple, one of the Bellwether stocks for the technology companies are showing decline in their sales. Which means that their Apple dependent business is showing significant slowdown. That’s not a good sign. At all.
One more icing on the cake was Huawei’s Founders’ daughter and the CFO of the company getting arrested in Canada at the request of The United States Justice Department. Huawei is not a small little enterprise to mess with. And the arrest of its CFO is an open call for a trade war between Trumps’s America and Xi’s China. No holds barred.
Situations like such call for a world stock market contagion. A contagion is like a virus. Even the healthy markets catch the flu. And China plus America control the technology world. One as a supplier and one as a promoter of such supplied goods and services in some cases.
It’s always better to move out of the way of an oncoming freight train. Even if there was a small doubt that the train is coming. I had that doubt 6 months ago when I wrote two articles back to back warning about the American Markets.
Now I don’t have any doubts. I see the freight train coming. And it’s approaching fast.
Author: Mir Mohammad AliKhan