re: Deutsche Bank Litigation / Bailout Watch

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Is this the start of a major correction?

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I'd say it has the potential to be a trigger for one, but the more certain argument would be that it would just cause European stock prices to slump for a while.

The DAX index has mostly gone sideways for the past 2 years, but given the rumblings we keep seeing in the press, I would expect the DAX to slump a bit over the next 6 months.

As to how big of an impact a potential DB bailout will have on the S&P 500 over here in the U.S., it's hard to say. About a year ago, we saw a major collapse of Chinese equity and commodity markets, which caused a global commodity slump and led to a correction in the S&P 500 of over 10%. The S&P 500 quickly recovered those losses though, and has continued to "melt up" in the wake of unexpectedly loose monetary decisions from the FRB, BOE, and BOJ.