As volatility in the global markets has increased, we are witnessing unprecedented declines in various sectors and asset classes - all at the same time. While the broad markets in the U.S. are only about 5 % off of their highs, many areas of the market have fallen much further. While the decline can be partially attributed to the possibility the Fed may end quantitative easing (which many don't believe will happen soon), it doesn't explain it completely. The dollar for example should be rising, not falling if the Fed is planning to curb its fiscal program.
Since a picture is definitely worth a thousand words we have posted several charts below. These charts are of various sectors over the past few months. Pay special attention to the last few weeks on the right side of each chart.
Either these is a correctional rotation out of certain sectors and asset classes into other sectors/asset classes, or it be foreshadowing a change in market behavior.
Commodities
Copper
Dollar
Emerging Markets
Emerging Markets Debt
Japan
Real Estate
Bonds
