Is a big bear wave coming?

Even as the budget deficit shrank to 2.8 % of the US GDP ($ 483 billion) -September 2014 data, (which indicates that fiscal reforms are on course) and even as US employment trends are positive, Dow Jones fell. As investors scramble out on European and Asian worries, the situation is one of 'nowhere to go' : Yen seems to be one reluctant option. Oil is tipped to fall further, and the trend is buttressed by Saudi comments who are on to a oligopolistic price cuts where the market leader cuts and others follow!. Yen falling is bad news for export oriented Japanese corporates. So is a strengthening Euro for the Europeans. OPEC producers will find their budgets in imbalance. Non OPEC members like Oman will find it even harder. Public projects will fall and construction will slow down as Government led project funding will turn to a trickle. Finance centres like Dubai which is external driven will be among the first hit perhaps as the wealthy will exit on finding falling real estates. Banks are likely to face stress too as non performing assets might increase as borrowers find their fund flows choked. In a falling scenario , commodities are hard hit. So one cannot move on to gold either.

It looks like a day of sellers exceeding buyers. The best is to be on the beach; if riding the waves, try to stay afloat; not swim.