The story of the day, the dow losing 258 points and really started with the bond market. Check out the yield. This is why it matters to stocks. 7 of the 10 s p sectors currently yield more than the tenyear bond. Investors buying stocks because they are the new bonds. How big of a problem is this . Bk. Well, listen, weve talked about this. I mean, its made me sick, we talked about it so much. This is what is going on. People are buying bonds. Were buying bonds for Capital Appreciation and stocks for yield. Its an upside down market. Its an upside down world. Now its starting to come home to roost. The volatilities increased. And the other thing you need to know, there is some underlying krentsz. Some strategies out there that buy both stocks and bonds. And when the volatility is low, they get bigger in their stock positions. When the volatility goes high, then they have to sell those stock positions and sell the bond positions. So thats why youre starting to see both of these come down.
Arrogance. When you own stocks, you got to be humble. Although, people recognize that humility doesnt come naturally to everyone. You have to recognize you will be wrong perhaps often. As the past few years have taught you, a painfully, your portfolio will get hit with things you never saw coming. Things you never imagined, let alone thought were possible. Who would have thought we had to worry about sipry ought banks what about abanomics. And one thing to be sure when you put a portfolio together is that at some point something will go wrong and it will hit you totally out of left field. Thats why dits so important t prepare for the next unexpected catastrophe, so you can make money in any market, or not lose as much as the other i go, because sometimes things dont go smoothly. How do we get ready for a calamity that we dont know what it will look like . One word. It is not hallelujah. But i always play it. They shout booyah, and im okay with it. But you if you say, im diversified and