Syria, next week's Fed meeting and the upcoming debt ceiling battle set up a perfect storm for global financial markets.
Syria remains a fast-moving and fluid situation, as first the "fear" trade took hold, sending equity markets lower and gold and oil higher. Then, virtually overnight, a diplomatic solution is now on the table and the "fear trade” is currently unwinding, at least for the time being, as world governments explore the Russian proposal for disarming Syria of its chemical weapons. Expect the twists and turns of this drama to continue whipping financial markets over the next few weeks.
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