...we need to worry about the next big leg down in the stock market..

...Some feel that there is a plan to dump the equity market here so as to be able to bring it back going into November. That is giving these people more credit than deserved as a loss of their only shining gain, the wealth effect of the 1932 type bear stock market rally, is not easily controlled. If it and the economy go into a double dip whereby a new low could be established, it will be a really shocking low. The risk is simply too high that control, once lost, cannot be recaptured. That was proven painfully in the 30s. Once the bear market rally was over it was all toast for years. Only a world war reversed the depression.

The poorly thought out knee jerk reaction to the Mass. political loss has put the market and more than likely the economy into a state of flux, which has the capacity to put this entire western world mess into a flat spin which as in a fighter aircraft is nearly impossible to correct.

Stay the course but tighten your seat belt in gold.

Volatility is going ballistic but one thing is for sure and that is a $1650 minimum price objective with much more probable.

Regards,
Jim