Over the Northern hemisphere summer, US markets broke with recent history by exhibiting uncharacteristic stability. The patient had kept to the Fed’s medication plan. But after the S&P 500 closed down 2.05% last night, instability is making a reappearance.
This is likely to make for a choppy local market, something to be welcomed rather than shunned. The US has enjoyed two years of uninterrupted gains and local performance over that period, with the exception of the mining sector, has been strong.