All Markets, Bull or Bear, Have Contractions, Consolidations, Corrections

Well, all markets, bull or bear, have contractions, consolidations, corrections — call them what you will—and it looks as though that’s happened to some commodities now. It’s also happened to some stocks and some currencies. It’s the way the world works. If you look at oil, for instance, it has gone down over 50 percent three or four different times since 1998. That’s what markets do, and they will continue to do that. I would expect we’re going to see many more periods like this in the next decade. I hope we do. Anything that goes straight up you know turns around and comes straight down eventually.

This Is A Huge Mistake For Switzerland

The move will work for a while, but the market will have more money in the end than the SNB. The Swiss central bank risks losing a lot of money buying up lots of foreign currencies which they will eventually sell at a loss.

Another risk is that the central bank will totally debase the Swiss franc trying to keep Switzerland 'competitive' which will then destroy the traditional Swiss financial industry.

So this is a huge mistake for Switzerland since they are going to suffer more either way.