Stocks are crashing! What happens next?

My thoughts on the current market turmoil

The stock market continued to fall today with the Dow Jones down 2.1%, the S&P 500 down 2.3% and the Nasdaq down 2.5%. Normally, investors flock to US Treasuries in times of stress but the US 10 year yield surged to 4.4% in overnight trading. The move in US Treasuries indicates some stress entering the financial system.

There’s speculation that China is selling its US Treasuries pushing up yields. It could also be forced selling by multi-strategy hedge funds aka pod shops. Or it could be a general movement out of US assets.