Have you seen the six-month price chart for the Dow Jones Industrial Average, the Standard & Poor's 500 Index, the NASDAQ Composite, the U.K. FTSE 100, the German Xetra (DAX), the Hong Kong Hang Seng Index, the French CAC 40, the Milan FTSE MIB, the Australian S&P ASX 200, or the Shanghai Composite Index?
I'll make it easy for you.
If you haven't seen any of them lately, check out one of them – any one.
It doesn't matter which one, because – really frighteningly – they all look remarkably alike.
Talk about dangerous liaisons!
Of course, that's not new "news." So why did U.S. equity markets, which were enjoying a reasonably positive day, turn tail and sell off hard into the close?
Because the truth is, regardless of incipient talk of some U.S. decoupling from global equity markets (yeah… good luck with that), we are all in this dirty, messed-up bed together.
The bottom dirty sheet is the Eurozone (okay, it's really all of Europe). The top dirty sheet is the United States. And the contaminated "comforter" that's been keeping us all somewhat cozy since the markets hit their Great Recession lows back in March 2009 is, collectively, the emerging markets. (As an aside, I hate calling them "emerging." They have arrived.)
Let me explain.
I call Europe the bottom sheet because it's like a fitted sheet. You know, the kind where the corners come together and hug the mattress so it doesn't fall off. That's Europe. Its debt problems are intractable. The only way the European Union can get its dirty sheet to the laundry is by pulling the corners of the Union apart.
That can be done only one of two ways.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
He helped develop what has become known as the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of 10X Trader, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade.
Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps.
Shah is a frequent guest on CNBC, Forbes, and Marketwatch, and you can catch him every week on Fox Business's "Varney & Co."
He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.