Asian equities are getting battered in trading today, following yesterday's meltdown in Wall Street and Europe
- Nikkei -5.26%
- Hang Seng -4.32%
- Shanghai Composite -1.99%
- CSI 300 -2.09%
- Kospi -2.95%
- Taiex -4.73%
- ASX 200 -3.04%
The VIX is at 37.32, equities are being dumped left, right, and centre, investors are moving back to bonds. Pretty much as risk-off as you could get in markets.
It's the first time in quite a while that we've seen a "panic sell" in equities, but one can argue that we have gone too far, too fast in recent times - and a correction here is healthy. Then, there's that bond market rout last week too.
I mentioned here yesterday that a flight towards safe haven assets like bonds could actually benefit the equities market, so it's something to look out for when investors start wrapping their heads around what is going on once the hysteria settles.
But for now, listen to what the market is saying - and best be wise to heed advice from the old trading adage: never catch a falling knife.
