More than meets the eye...

The Intensity and Co-related movement across asset class shows that something big is coming over next few months. What we have seen in last 2 week seems to be trailer of things to come. Also, it shows that someone big has panicked and it seems that one who panics first panics best. Below points highlight that what has transpired over past 2 week indicates something more than meets the eye

• Major European Markets like DAX (Germany), Swiss, CAC (France), Italy have erased gains of last 2 years in last 2 weeks. Many are close to 2009 lows. All this have happed in last 2 weeks (28^th July- 10^th August)
• Commodities based Indices Brazil and Australia has performed similar to European Indices erasing 2-2.5 years of gains in last 2 weeks.
• Many Large developed markets have been more oversold than they were in panic months of Sep-Oct 2008.
• First time in Dow’s history it has moved by -635, +430, -520, +423 points on four consecutive days.
• Swiss Franc soars 5% + against US dollar, most since 1971 (beginning of Bloomberg records) on 9^th August 2011 (Post Fed announcement to hold rates till mid 2013) and one day later on 11^th August 2011, Swiss Franc falls 5%+ vs Euro, most since euro was introduced in 1999.
• Panic of last 2 week didn’t happen with any major appreciation of dollar index but with massive appreciation of Swiss and Gold...This is unlike 2008, when panic resulted in massive appreciation dollar Index.
• Asian Indices are fared better with most of them within one year low (while Hangseng and India little more than one year low)

Policy Response similar to 2008....??

Belgium, France, Italy, Spain have imposed 15day financial stocks short-selling ban. This is similar what was imposed in US during the worst part of crises by imposing ban on financial stocks...Following couple of months post ban were worst part of the 2008 crises....