>Better fix the bond market…15% drop coming
Looks like the 10 year T-Bill, but could be the 30? Market forces rather than market intervention should be allowed to play out. The latest rate increase appears to have been a blunder.
We've been in correction mode since late October. The earnings of many companies do not justify the price levels. FB & AMZN come to mind the quickest. If the tax cuts had not been passed, the sell off would have occurred sooner, but now those cuts are baked into the puzzle with limited upside potential. The world economy was cooling before the 2016 election. One thing I've noticed is that the market never does what most think it will. I think today's drop was partially due to tomorrow's close with smart money heading for the sidelines on selling into the rally and getting to hell out.