Fasdal: Are markets heading for the perfect storm?

Saxo's Simon Fasdal looks at the new risk factors that have hit
markets. He says the almost 30% drop in Glencore's stock was a shock
factor. Bonds continue to trade lower today because he says the market
believes they will be stripped of their investment grade rating.

Volkswagen too has spooked the markets with increasing concerns for
the rest of the automobile industry.

Another major risk factor which Simon focused on last week, is Brazil.
Although the real has stabilised, other markets are still showing
signs of severe stress. He points out that bond markets are trading at
high yields while credit default swaps are spiking at 545.

Simon concludes that investors must be extra cautious. If we see the
combined escalation of Glencore and Brazil, he warns that we are
looking at a perfect storm for financial markets.

[TwoChristiansWalkIntoaBar]

Great stuff Simon. Do you see Tesla as a hedge against Internal Combustion Engine car manufacturers and an interesting investment itself? Just yesterday they launched the Model X SUV, which looked amazing in many different ways.