The observation about interest rates is undoubtedly correct, but it does not account for a stock market reversal, which should be coming soon, perhaps very soon.

 

It is also interesting to note that "60 Minutes" last night featured a story about the office glut in Manhattan.  In John's letter today, Manhattan ranks no. 12 in bad office markets, with San Francisco being the worst in the country.  Banks are facing billions and billions in write-offs on office buildings, and they have nearly maxed out their ability to defer doing so.  The consequences look ominous!

The bad news, however, is good news for precious metals, related mining stocks, and other countercyclicals.