Maniac in Motion

The Market Domino Effect: Staying Ahead of the Curve

It's true. V and MA are slowing down because US consumer spending is slowing down. Granted they are multinational companies, but if the US economy slows down and stops spending by $160 billion, that can't be made up by developing nations like South Africa. They just don't consume enough to offset such change. They're great companies, but are unattractive on a valuation.

COF will take losses on its credit portfolio, and may likely be a distressed assets takeover candidate once investors panic about the losses they continue to incur as more homeowners lose their homes. FYI, it's estimated 1 in every 6 homes will go to foreclosure by the time this is done. That is a definitive negative wealth effect, and a 10% market correction doesn't fully price in what that really means.

It's cliche, although it really does appear like investors are riding on a slope of hope.