Sell Off!

Markets are down everywhere!

The commentators are FULL ON!  I have heard...

"This is the buying opportunity we have been waiting for..."

"Buy the utilities...safer for now."

"Today is a good day to take a break. We would be more inclined to buy here."

"This is the healthy pull-back we have been expecting..." (The commentator never said this before yesterday...)

"If you sold in 2009, you made a terrible mistake! Don't sell now!"

"The FED has gone crazy! There is no reason or the FED to raise rates!" 

Everywhere, we are being told to hold or buy more stocks. I see no one on the major business networks telling investors to sell or stay out.

Here is REALITY!

Excess leverage ALWAYS results in bubbles. We have had excess leverage, in the form of the lowest interest rates in human history, everywhere on Earth for a decade. 

Because of this excess leveraging, the stock markets and many housing markets in the world are now bubbles that will burst, AS BUBBLES ALWAYS DO. The markets were pumped for a while with buy-backs courtesy of the Trump tax cut. That money has dried up.

Rates should have started up again once we had significant growth, which was in 2010. We are now starting to pay the price for policy decisions over the last decade that rank as the most incompetent ever taken.

Bubbles collapse in a series of steps, marked by serious volatility.  The DOW could actually rise today. 

Hold on!