Local market was bashed from the open and faded through the day even further lower. All sectors were bashed red with Tech and Health Care leading the red list.

Local economic woes saw AUDUSD slide all day. The calamity that is Federal and State government cooperation is a fallacy. It works when things are going well but it doesn’t work when things get into trouble. Basically, a useless process!!! RBA continues to talk a lot and do very little. Government running protections racket for everything from “Buy Now Pay Later” to “Aged Care” but doing nothing to fix the economy…apart from more failed tax cuts to prove again and again that “trickledown economics” do not work in fake capitalism. Buckle up as global economies are fading and lack of reform means more money printing is the first, second, third and only option on the table!!!

US market started negative overnight and then moved into a good old fashion belting with DOW down nearly 3% to NASDAQ down nearly 5%. Tech bubble leading the bleeding after reaching extreme valuations on momentum trades. The latest job data improved after the collection process was changed to get an upgrade while unadjusted data showed no improvement. Total fed and State benefits claims near 30m. Bonds were higher and commodities were lower but currencies didn’t moved much. Interesting that US$ didn’t pop on risk off...maybe markets are realizing that US$ is just as much a ponzi scheme as Euro and Yen. How the mighty have fallen but living in denial. Best sectors were energy, utilities and gold while the worst were tech, retail and health care. The leverage and options exposures were sitting at decade high into Sep and they were torched overnight. US election uncertainty means more fiscal mess. US Fed meeting next week and it’s a short week as well...there is only one plan and that is to print more...stay long Gold!!!

Remain nimble, contrarian and cautiously pragmatic with elevated global macro risks!!!

Markets out of complacen-sea and into de-nial!!!

Not already a Livewire member?

Sign up today to get free access to investment ideas and strategies from Australia’s leading investors.