A Whole Lot Of Pain Is Coming

A Whole Lot Of Pain Is Coming

For those who are wondering what is ahead, a whole lot of pain is coming.

By Bill Fleckenstein President Of Fleckenstein Capital
March 14 (King World News) – 
Today’s headline refers to the fact that, really for the first time since the Trump rally began, it actually feels like the market may have achieved exhaustion. I am aware that I have noted a couple of potential island reversals (which ended up not mattering); however, today I am just describing how the market feels to me. Of course, I could easily be wrong, but I thought I would at least bring up the point because if I’m right we will see some weakness, followed by a failing rally, followed by a whole lot of pain…

QE Fumes May Prove Flammable
For the last group of years I have discussed my view that any downside that gathered even the slightest bit of momentum could accelerate into a dislocation quickly. When I say “quickly” I don’t mean that as soon as the peak is seen the market will collapse. I mean that if we gather momentum to the downside, between the paid-to-play crowd, ETFs, the public that has piled in, and whatever negative impact derivatives may have, I don’t think you could have created a more combustible mix if you had set out to do so.

Then again, there is the budding problem with world bond markets, which may have seen their 35-year bull market end last summer, and when all that is mixed together, along with geopolitical issues and Trump’s governing style, you really have the recipe for a volatile combination if the collective mindset of the world’s investors starts to change.

I don’t want to get too far ahead of myself, but I haven’t had much to talk about from a strategic standpoint for a while so I thought I would bring all that to everyone’s attention.

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King World News

Interviews with market experts from around the world with a focus on precious metals.