Around the world, equity markets are teaching investors some subtle risk management lessons. Namely, blindly buying cheap stocks is not always a recipe for success. When economic fundamentals deteriorate, cheap stocks get cheaper.
Case in point, this morning, the European Commission warned of slower Euro-zone growth, while inflation will remain subdued. That put a healthy handicap on European equity markets, many of which remain in crash mode.
Like Spain:
Germany...
... And Italy:
Meanwhile, over in Asia...
While you were sleeping, the often overlooked reality playing out in Chinese equities just got worse.
By the way...
The Nikkei is still in crash mode.
