Wall Street is at all time high. So are the markets around the world. The big funds that are driving up the markets are now reeling with big profits and waiting to cash in. The correction is coming when profit taking sets in. If this is the case, nothing much to worry about. After the correction, the funds will buy back into the market and another round of rally will follow.
There are two dangerous flash points in the world that are about to blow up. In both cases, the main players are lunatics that would act beyond reasons. Trump has just hijacked a Venezuelan tanker. Putin has vowed to defend Venezuela's sovereignty. What is Trump's next move that could trigger a reaction from Putin leading to the first bullet being fired is anyone's guess? When that happens, it will not just be profit taking. Every fund manager and punter will be running for their lives. Dump everything for safety.
Wall Street will see a big sell off triggering a big wave of selling in all the markets in the world. Fear, herd instinct, profit taking, uncertainty, all added to the panic selling and there will be a Big Bang!
Another high flash point that is brewing and not cooling is the tension between China and Japan. Xi may be a cool cucumber, thinking very carefully before any move. On the other side of the fence is a mamasan and a young turk who think they are the new hopes for Japan's rise as a regional hegemon. When these two lunatics are working hand in hand, anything can happen. They are scheming and plotting to drag the Americans to fight China. The latest J15s versus F15s encounter could easily turn foul. The trigger could be pulled and an aircraft shot down. This would mean war between China and Japan.
The effect of a shot being fired in the sea around Japan would have even more devastating effect on the stock market. It would involve China, Russia and North Korea on one side and Japan, hoping for the Americans to join in. No investor in his right mind would want to hold any stock in the market, especially when there are huge profits to be taken and the risk of losing their pants is very high.
A major war will tank every stock market for sure. The Big Bang is just around the corner.
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