This May Be The Beginning Of A Big Bear Market

I know we're all very worried when the market goes down 6 or 7 percent but even 6 or 7 percent is meaningless in the big scheme of things. Now, having said that it may be the end, the end may be finally here. 

It's been 10 years since we had a serious bear market in the United States. That's the longest in in recorded history so we may be ready. This may be the beginning of a big bear market. 

The way bear markets work is they start where nobody's looking. In 2007, Iceland went bankrupt and nobody cared. Ireland went bankrupt and then Northern Rock went bankrupt and Bear Stearns went bankrupt and by then some people started to see that something's going on. By the time Lehman Brothers went bankrupt everybody knew it was in the front page of the papers and the evening news and we all knew a year and a half or so later that there was a serious bear market in the works. That's the way things work.

Now we have had things like that happening in the last year or so: Turkey, Venezuela, Argentina, Indonesia, Indian banks, Latvia... You know, the things that no he cares about or pays attention to and they're all very small but it may be the snowball gathering speed and this may be it.

Is The Fed Going ‘Loco’?

The truth is the Federal Reserve did go crazy a few years ago and drove interests rate down to zero which had never happened in history. Now, they are trying to get sanity back and raise them to the proper level.

Global Markets: Investment Opportunities

The Chinese market is down 60% from its all-time highs, the Japanese market is down 50% from its all-time highs. Russia is hated, Zimbabwe has just thrown out a absolutely absurd dictator who ruined the country for 40 years. There are great opportunities there. I've recently invested in a little bit not much in Ghana. Ghana was ruined but Ghana is changing dramatically. They have really smart, knowledgeable people running Ghana now.

The Beginning Of The End?

Read the latest commentary from Jim Rogers on the latest market sell-off and its implications going forward:

Beginning of the end? US equities sell-off wave affecting global economy - Jim Rogers

Stock Market: Updates from Peter Schiff

Read the latest stock market updates from Peter Schiff: Stocks: A True Bear Market and Markets: Stocks & Bonds

U.S. Stocks Are Weighting Too Much

U.S. stocks are so dominant among developed markets that their position has become “unsustainable,” according to Luca Paolini, Pictet Asset Management Ltd.’s chief strategist. 

Paolini made the argument Wednesday in a Twitter post that showed the country’s weight within the MSCI World Index, representing 23 countries. The U.S. share rose to a record 62.5 percent last month and closed just below that peak Wednesday, according to data compiled by Bloomberg. “Overblown” earnings estimates are among reasons why the percentage is poised to fall, he wrote.

Source: David Wilson, Bloomberg

Ray Dalio: The “War” with China Is Spreading

A fantastic diagram from Ray Dalio of where we currently stand:

"Because geopolitics is playing a greater role in driving economies and markets than any time in my over 50 years of investing, I am thinking a lot more about it." - Ray Dalio