Market Decline Will Continue

Japan's debt to GDP has gone upto 230% of  the economy compared to  only 170% in 2008.

In the U.S., the debt jumped by $7 trillion since end of 2007. Our total debt hit a record $49 trillion (350% of GDP) at the beginning of  2008.Today  total U.S. debt is more than $55 trillion. We can carry this debt only because our rates are near zero.
 Now that interest rates have started rising, decline in stock  and bond markets around the world has started.  ( 30 year Mortgage rates have gone above 4% compared to less than 3.5% only a month ago.)  No amount of speeches by Federal Reserve members is going to reverse this trend. 



 Same is happening in   Japan. Their 10-year note jumped from 0.6 to near 1% in a few days. Nikkei is now down 19% from its peak in early May. The illusion of growth created by Central Banks around the world will come to an end. A currency war among nations has already started.

 

While the market is going down TZA is going up.

Long positions should be opened only in TZA as IWM and RUT continue to go down