The global stock markets had a rough week with the Asian markets hit the hardest but the Eurozone and US were also under pressure. Still, the US averages are holding well above the prior swing lows. The Russian market has been one of the worst, down over 27%, so far this year, and if they are hit with sanctions it will get worse.
The combination of the continuing crisis in the Ukraine and more weak data out of China has increased the fear amongst investors. It is hard to tell how far Putin will push the West as his behavior over the past few years seems to be steroid induced.
The ups and downs of investor sentiment have been quite typical since the end of 2013 when the bulls dominated, but in just over two months they have become more nervous. Those who decided to buy if the market declined seem to be having second thoughts.
There has been some new buying in the bond market as their safety has become more attractive. As I discuss in more detail in the technical section, given the current stock market outlook, I am not expecting any more than a 5-7% correction, and it could be less. Therefore, I still think it will provide a good buying opportunity in select stocks and last week's recommendations in Is Your Portfolio Well-Positioned? are generally acting well.
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