Just a “correction”?

Probably not.  Market experts call it a “correction” when the market looses 10% of its value.  The Dow opens this morning with over a 10% decline from its all time high.  This decline will go deeper and last longer.  That’s my expert opinion.

American debt continues to increase and be largely ignored, but the world financial system is watching.  China just de-valued its currency.  That adversely impacts our trade balance, making it more expensive to buy USA products in China and cheaper to buy them in America.

World Markets are declining too.  Japan, Shanghai, London, Paris and Frankfurt markets followed joined the Dow Jones in recording big losses.  The worst may be yet to come.

Oil is below $40 per barrel.  That hasn’t happened since the last financial crisis 6 years ago.

This could be a significant week in the financial world.  A speech is scheduled from the Vice-Chairman of the Federal Reserve, release of housing data and  data on second quarter GDP.  Markets are volatile.  Investors are nervous.  It could be a rough week.

Brace yourself for what could be a long ride.

***Gordon Howie is an author and CEO of Life and Liberty Media***

“It’s not about right or left, it’s about Right or Wrong.”

 

 

 

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