So what do investors do when they're scared? They buy gold.
The global sell-off in stocks helped gold hit a six-month high, bringing it within arm's reach of $1,400 an ounce. So, if you're looking for a safety trade, is bullion your best bet?
Richard Ross of Auerbach Grayson thinks could go as high as $1,550, saying "gold continues to benefit from a myriad of technical and macro-technical factors which continue to make it a buy…the Russian market is on the verge of a major collapse…gold is the type of place you want to be under exactly those type of macro circumstances…this could be the start of a new bull run here."
On the contrary, Enis Taner of RiskReversal.com gives three reasons why the recent rally is a sell sign. First, silver, which tends to outperform gold on both the upside and down, has lagged bullion for much of this year. To him, that means there is little confirmation in the trade. Taner also says the recent weakness in the dollar has provided much of the tailwind for gold. But as the dollar index near one year lows, that selling pressure may soon ease. Lastly, Taner feels that sentiment has become too bullish on bullion. That could be a contrarian indicator that now might be a time to sell.
So who's right? Check out the video above.