Dear Rundown Reader,
You’re going to hear that word a lot this week.
As Turkey continues to spiral into crisis the fear it will impact other markets has many experts on edge.
Is it time to panic, and quarantine your money from Turkey?
Today’s Rundown breaks it all down and shows you what to expect from Turkey’s market “pox.”
But first, a comment from a follower on gold as “boring.”
“I think of gold as stable, while the value of the dollar is the element that’s fluctuating, influenced by the economy, trade wars and the Fed.”
We didn’t mean boring is bad. But right now, gold isn’t exciting.
Your Rundown for Monday, August 13, 2018…
Turkey’s Fallout Brings Fear of Market Pandemic
Remember the bird flu?
Turkey’s cooking up something worse, and many experts are worried it could have a pandemic effect on the global markets.
Pre-market today, U.S. indexes are all dipping in the red. Asian and European stocks are also feeling the pressure.
The New York Times reports, markets in Hong Kong, South Korea, Japan and China fell hard today, “dropping nearly 2%.”
European stocks aren’t fairing much better. The Euro fell to a 1-year low against the USD notes the Times.
Meanwhile, Turkey’s lira is testing new lows almost daily. CNNMoney noting, the “lira plunged as much as 11%” against the USD in early trading today.
The question is… is it time to panic?
After all there’s no debating we’re seeing a negative impact ripple through the global markets today.
But, is a full-blown pandemic on hand?
Not yet says our income expert Mike Brunick:
“Turkey’s not a significant risk, although its currency is quickly following the same path to perdition as the Venezuelan bolivar,” notes Mike. “Turkey is one small EM country, with an $800 billion economy. Most at risk are banks that lend heavily to Turkey, but that doesn’t include U.S. banks, who only loaned $18 billion to Turkey.”
Moral of the story?
No need to duct tape and plastic wrap your portfolio. This contagion threat is overblown panic for market players in the U.S.
Now, turning to the markets this morning…
Market Rundown for Mon., August 13
S&P 500 futures are down 1.75 at 2,835.
Oil’s down $0.25 at $67.38.
Gold drops $13.10 to $1,205.
Bitcoin goes for $6,446 this morning, according to CoinDesk.
We’ll talk again on Tuesday.
For the Rundown,