The first tremors are appearing in the stock market, with volatility making a huge comeback. Earlier in Feb, the market saw a correction and volatility jump after being depressed to record levels for years. Of course, shorting vol was something that traders were taking lightly ignoring the risky nature, and has wiped out their working capital overnight.
Turning a more wider view, the new Fed chair has taken command and it appears that he is taking a different approach. As I mentioned in my Outlook for 2018 post, the US$ will be the most interesting asset to observe in the investing universe. The moves are already pretty apparent as the slide has accelerated since the start of the year. The US budget deficits are getting more media attention, the US government saw a brief shutdown — only to kick the can down the road for a short while, interest rates are rising while the currency is sliding — the US market is now behaving like an emerging market!! These are interesting times, no doubt. I will be keeping a very close eye on the US$ and continue to position myself to protect my purchasing power as the world’s reserve currency continues down the devaluation path.