Norman Raschkowan and Downward Spiral

risk exposure: People are just reducing their risk exposure a little bit because nobody really knows, he said, according to The Toronto Star. Last Monday, the recent downward spiral in Chinese shares accelerated as the Shanghai composite index fell 8.5 per cent. Norman Raschkowan, senior partner at Sage Road Advisors, said Canadian investors are less concerned about recent talk of recession than they are about the volatility that struck the market last week as Chinese equity markets tanked. Worldwide markets reacted to the news with a broad sell-off, and the TSX fell more than 420 points on the day. The widely watched Dow Jones industrial average shed 1,900 points early in the week before recouping almost 1,000 points in a two-day span, including a 619-point gain Wednesday that was its third-largest of all time and the biggest since October 2008. Yet those losses were offset by gains for both the TSX and the Shanghai indexes later in the week, and other major markets also showed significant volatility. (news.financializer.com). As reported in the news.