Dow Plunges on Hawkish Yellen Comments

For the year, utilities are down 13%, commodity stocks -30% and industrials down about 5%. Aside from the occasional blow up, most stocks outside of the commodity and utility sectors are little changed for the year.

The broader indices are unch. Imagine if the S&P was down 20% this year?

My point, this is merely child’s play. The difficulty you’re having now, dealing with badly trending stocks, will pale in comparison to the devastation you will face in 2016.

Oh, that’s right, “The Fly” is calling for complete and total cataclysm in 2016, led by a strong dollar, higher rates, and a toppling of the ponzi scheme that has played out in the energy debt markets since 2009.

With over $100 billion in distrssed oil and gas debt, I am looking forward to the bankruptcies of many of our finest oil and gas plays, like CHK.

Winding down 2015, I am heavily long CNC, PAH, VRX and SHAK.

Today’s decline is a mere appetizer of fabulous things to come. The Fed wants to clear the market of bad actors, expediting their liquidation. Be careful not to get mixed up in this insidious ordeal.

Reminder: Jeff Macke is now on iBankCoin. Here’s his take on Yellen’s speech.