The sad fact is even the Federal Reserve's ability to lower interest rates to buffer the collapse is pretty much dead given where interest rates stand now. A downturn may be horrific and is why everyone is doing everything to avoid a downturn. That said, the prolonged upturn still seems in tact with few bears. Just like the slow economic growth, expect nothing much to change as assets go up in value and growth remains weak. There are no easy ways to get out of the trap the Federal Reserve has wrought.

The market is a cruel master, not so much for the asset manager who must keep up with it and gets laid off when the market nose dives, but for the people who invest in such funds that are trading to beat the average by taking excessive risks and seldom get sufficient reward especially considering the losses they tack on when the market falters.

Take matters into your own hands and buy stock yourself. Why pay people to play with your money and pay taxes on theoretical gains when you don't have to.

The technology is intriguing, but the barrier to entry remains too low and the number of crypto currencies is multiplying. After all, it is enriching to create your own currency, enough so I expect to see gads of crypto currencies multiply like poppies in the coming years. Who will be a winner is still far from certain.

Like Japan the training wheels can never come off and is why the market is doomed to stagnate or fall. That said, removal of them and the economic malaise following it is better than the distortions that now exist that destroy free market signalling and gradually obliterates our economy.

What is happening is exactly what happened with Japan. Since we are following Japan it makes perfect sense we are following in the footsteps of what led to the lost generation in Japan. The reason to raise rates is to protect us from a new downturn which inevitably will happen. It is not due to inflation or any need other than that. Undoubtedly downturns from now on will be even worse just like they were in Japan.

As Einstein said, "Insanity is doing the same thing over and over again and expecting different results." We are doing the same experiment over and seem amazed or perplexed that the results are the same as Japan's. To the Federal Reserve, congratulation at killing our economy.

Some industries clearly won't be affected by North Korea's provocations unless turned to action. Thus as always, there are winners if you don't play indexes and mass diversification. Also invest in that which isn't overly influenced by dollar depreciation.

The issue is that the technology is alluring and valuable. Those embracing it fail to see that where the technology goes the currency doesn't have too. They also fail to see that there can be devaluation by overproduction not by the algorithm but by the mass production of different versions. That said, bitcoin seems to be a leader and could be one if not the winner. However, to be that it will need to be more widely held and more easily stored and transferred. This means its high price is actually a deterrent to its success. Irony of ironies.

The only thing one needs to look at is where the dollar and rates head. This market has recently been buoyed on dollar weakness and is why large caps have outperformed.

The tax cut will have little economic effect if it mainly affects the wealthy. It may also be adverse if it is not offset by curbs in spending thus providing a one time economic stimulus at the cost of further reducing the governments ability to spend more at a later date for any given reason. Sadly, prior suggestions suggest both those may be in effect at any proposed tax cut. Sadly it's not being driven by economics or by rational attempts for a solution, but for political reasons alone. This is not a good start at all.

I don't believe for one moment the Federal Reserve will lower their balance sheet right now and neither does the market. Ergo, the decline of the dollar.