In this week's Off the Cuff podcast, Adam and Charles Hugh Smith discuss:
- Market Turning Point?
- Weakness seen post-"taper" rumors
- Impact of Higher Interest Rates
- Kryptonite for most asset classes
- Gold & Silver's Terrible, No-Good, Very Bad Year
- Will it get any better?
With Chris on the road, I sit in to talk with Charles Hugh Smith this week.
With the unpleasant reaction to last week's FOMC minutes (which included a whiff of the dreaded "taper"), there was a technical breakage in the general market uptrend. If this proves to be the case, based on current support levels for the major indices, Charles thinks a correction of 20% could happen quite swiftly. He'll be looking for choppy volatility over the next few days/weeks as an indicator that the previously steady upward momentum has indeed been broken.
The FOMC announcement also saw a jump in interest rates, which began rising around the world in May. We are keeping our eyes closely focused on this development to determine if this could be more than a cyclical rise in rates. If not — meaning it's an end to the 30-year secular period of declining rates – then things are about to change dramatically. Rising rates are kryptonite to economic growth and pretty much exactly what the struggling global economy doesn't need right now.
by oliveoilguy 
