The sky is falling. The US stock market finally suffered similarly to other markets around the world and dropped precipitously. The only assets that are looking up are gold and bonds. That is a very bad sign (in the short term). As a side note, small caps (as could be expected) are doing worse than anything. I noticed a while ago that small caps were “cheaper” than large caps and bought in. Now I hate my stocks.
For the near future, bonds are the place to be, when compared to any other asset class. I no longer expect a Santa Claus rally, and I expect this rout will last (in Canada, at least) until oil prices look prepared to recover. This may be a general correction of the previously optimistic outlook to a stance of greater pessimism. Animal spirits, what?