Confusion and irrational fear characterized financial markets during a remarkable week, with the CBOE Vix Index (the so-called “fear gauge”) spiking above 70 for the first time. Amid the dumping of stocks on all bourses, the US dollar, Japanese yen and precious metals were the only safe havens.

Nobody really knows what happens next, although some indicators are starting to signal that a bounce may not be all that far off. But stock markets are unlikely to find a cycle low before measures are implemented to stem the decline in confidence. It may take a while yet before we see the bear’s corpse, but look out for a 90% up-day as a signal of the completion of the selling climax.

Read all about this in my weekly review, highlighting some thought-provoking news items and quotes from market commentators during the past week.

Enjoy the read.