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Asset prices in free-fall: Stocks. Housing. Commodities.

Asset prices are in free-fall: stocks, housing and commodities.

Early morning today, stock  prices are rising. Or at least they were when I started writing this blog.

Good chance to lighten up.

There are “reasons:”

+ Outlook for the economy has dimmed. Corporate profits are tightening.

+ The Fed is raising interest rates. Old rule:  “Don’t fight the Fed.”

+ Trade War with China drags on. Xi and Trump are both ultra-stubborn. Xi is helping his hurting economy with infrastructure and help for the banks. You can do that when you’re President for life. Hence less incentive to meet Trump’s demands.

+ Housing is being hurt by higher interest costs. Houses are now more pricey.

+ Investors in hedge funds are bailing. Hedge funds are selling to met the demands.

+ Gridlock in Washington for the next two years, followed by a bruising Presidential battle.

+ Europe is not doing well. There’s Italy and Brexit.

+ Israel is going to war with Gaza, which just lobbed 300 rockets into Israel. Not good.

+ People are holding Open Houses for places they want to sell. And no one is showing up.

+ Black Swan events — like the Malaysian corruption scandal that just hit Goldman Sachs. Look at what just happened to them. This is the last five days:

I can’t predict any of this short-term. I’m guessing stocks will go lower. Certainly the gut-wrenching volatility is likely to continue.

Today seems a good time to lighten up and hold more cash.

There’ll be great buying opportunities soon. But not yet.


+ My bank delayed sending an important wire because it thought someone had hacked my email. Cautious, yes. A pain, yes.

+ Fidelity is having trouble doing trades. No one knows why:

+ Spectrum is killing my Internet connection to the cloud (where this blog resides) every three minutes this morning. I don’t know why. Annoying.

Harry Newton, who remembers the old adage: Want a sure way to get a small fortune? Simple. Start with a large one.

Good news: You can now buy red MAGA hats on eBay for less than a quarter of what Trump is selling them for.