Par for the course, I’m on vacation and the market has its most severe two day correction in six months. Is this a normal correction in the confines of a cyclical bull market or the start of something worse? Negative pundits are already comparing the 1989 collapse of Japan to the current state of China and forecasting the collapse of commodities. I would say let’s not go crazy. If the world economy does soften, there is no way the US stops reflating, and that is the key to the long term inflation of assets. I’ll have some more thoughts on this next week, but suffice to say, I strongly believe that we are going through a normal healthy correction in an upward trending market.
Joe