MARKETS ARE CRUSHING!!!!

Global markets are in turmoil due to concerns over an economic slowdown.

U.S. stocks have experienced significant losses with the S&P 500, Nasdaq 100, and Dow Jones Industrials dropping to their lowest levels in weeks. Weak economic news and disappointing technology earnings have fueled worries that the Federal Reserve is being slow in cutting interest rates.

The consensus is that Q2 earnings for S&P 500 companies will increase by 9% year over year. Although most reporting companies have exceeded earnings expectations, only 43% have beaten revenue expectations, the lowest percentage in five years.

Today's July non-farm payroll report revealed the addition of only 114,000 new jobs, far below the estimated 175,000. This, along with yesterday's weak manufacturing data and disappointing corporate earnings outlooks, has heightened fears of a deteriorating economy.

We are facing a major sell-off in global equities.

Analysts are saying that the FED may have made a mistake by not lowering the Fed Funds rate this week. They now believe that there is a 70% chance of a 50 basis point rate cut at the September 17-18 FOMC meeting, up from the previous 30%. The likelihood of a 25 basis point cut has dropped from 70% to 30%. Looking ahead to the end of 2024, the market shows increased conviction for rates to decrease in November and December.

As a result, the U.S. dollar has dropped to a four-month low.

At this point, whether you're an investor or a trader, there are some key questions you should be considering:

1) Should you "buy-the-dip"?

The stock market can overreact to news, especially during periods of high uncertainty. While there may be a rebound after a significant price decrease, it's important to be cautious and have a strong rationale for buying the dip.

2) Should you take a vacation and defer decisions until September?

Historical analysis shows that August is typically one of the weakest months for stocks. Lower trading volume and sideways trends are common during this time. Trading activity only picks up after summer.

3) Should you invest in commodities or Bitcoin?

Recent developments suggest that the USD bull run may be losing steam. Commodities, particularly Gold, and Bitcoin have seen advances. Each commodity has its own distinct characteristics and price drivers, so careful consideration is needed.