What recovery?

Overnight stockmarkets plunged (the US with biggest drop since June) on the back of more data suggesting the “recovery” is not real.  US manufacturing was the weakest in 8 months and on the back of China’s manufacturing index also down to a 6 month low.  Emerging markets continue to take a battering post tapering and fears of China’s debt bubble are escalating.  Gold prices and silver prices both rallied last night in response.  Of course tomorrow could bring more “recovery” news but the graph below puts the real story nicely in to perspective where the ‘rubber hits the road’.