Taper tantrum 2.0 rages

Thursday 16 October 2014

By David Llewellyn-Smith

And so, the most forecast market crash in history has arrived. Taper tantrum 2.0 (TT2), right on cue. Is it any different to taper tantrum 1.0 (TT1)?

Well, yes it is. The stock market component is bigger, with developed market economies as much in the frame as emerging markets. The S&P500 has done itself much more technical damage as well with its big up trend broken and printing a lower low on the pullback for the first time since 2010. Last night it fell 3% before recovering to be down 1% near the close:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.