the way i see itThe sell off as far as I'm concerned:
Money managers are throwing the baby out with the bath water because they think they will buy back in late August cheaper.
What we had here was a scenario of all the emerging Economies in Asia as well as European Countries tightening credit in the past year and a half to stave off inflation and bond debt issues. Political agenda or just plain foolishness causing a lot of restriction in the world recovery.
Currently all over the world countries are now easing. The most recent events in the last quarter:
-Brazil Signals More Stimulus After Reducing Rate to Record 8%
-Bank of Korea Unexpectedly Cuts Benchmark Interest Rate
-analysts forecast the Bank of Japan will increase asset purchases today, while Indonesia will also review rates
-China lowered reserve requirements
-UK increased asset purchases
-US extended operation twist
-some Federal Reserve policy makers have said that more stimulus is likely to be needed
I predict we are going to be getting good GDP numbers (comparatively to today) by the latest of 4th quarter and the market will be buzzing again