The phrase that we consider in this morning’s report is “Ebola as a generalized exogenous shock to markets.” We also refer to the October 12, 2013 Peoplenomics report “The Solution No One Wants to Talk About” in which the economic efficacy of a pandemic die-off as an ideal plot of the 1% to kill off mere peeps. In purely hypothetical terms, mind you, but it’s resolving as shockingly close to the mark as headlines come out.
Key for markets, too: We are down to just slightly below 50-day moving averages in a number of indices we track. Although it’s axiomatic that “markets don’t crash from all-time highs” it’s also true that the American markets have backed off recent highs and are sitting at first levels of support, and may extend below them when the Dow opens down 50 and the S&P challenges 1,900.
Hence this morning’s outlook. Not without coffee and headlines, and this begins with a discussion of how cyber security is coming around again – this time with 1.2 billion stolen passwords, and some notes on dealing with that problem. If you’d read my ebook Broken Web The Coming Collapse of the Internet, you’d likely share my lack of surprise at what’s happening now. And as a subscriber you’ll be comforted that Peoplenomics has no exposure because of a strategic decision make long ago… so let’s begin with that discussion.