Agreed, rebalancing is probably the best action moving from high volatility to lower volatility stocks especially and seeking strong value stocks. That said, almost everything in the market is valued on the high side besides commodity stocks, which may be still a buy in specific cases.

Good article. Economics is complex and being the world's reserve currency is all the more difficult, however, as the author correctly states, it is worth it. Losing it would mean that the US couldn't finance its future deficits and would experience mass inflation as an import dependent nation. It would also lose its clout and with it lose a lot of the brand name value that enriches the country even though we don't produce most of what we get the branding value add for virtually free.

It is understandable that we should seek a change when we are the losers, however, the US is the mass winner in global trade and any other country would easily switch places with us, even China. Let us hope we don't give others the opportunity to switch places. The grass looks greener on the other side, but no grass is as green as the US economically speaking.

Largely true, however, Ronald Reagan didn't have it easy and had to tame high inflation and worked with the central bank to do so quite well. That said, he also stimulated the economy by running up massive deficits on voodoo economic tax cuts and mass deficits through a defense spending splurge.

The expectation was Trump would be able to cut taxes and do mass deficit spending too, however, I seriously doubt it. Fiscal conservatives aren't that dumb and Trump clearly isn't showing leadership that could encourage others to move to his side to secure their seats. There is little a President can do in Congress if their approval ratings fall below 70%.

It will help teach people to no longer chase IPO prices to astronomical prices, especially since so many are IPOed at prices that are already exceedingly robust in valuation.

Good observation. Indeed, it doesn't look like a downturn is set to happen in the next 6 months. It seems like the concern is longer term and the worry is focused on the inevitable recession that may occur as late as next year.

Lower your property exposure just in case as well.

Many are in revenue recession, however, stock buybacks and dividends are still adding wealth for shareholders. This alone, is not going to crash the market.

Semi cycle downs are even more volatile that the massive jumps upwards. Sadly, the cycle up is not being driven by mass increases in demand which looks very dangerous.

The longer no massive budget deficit plan is implemented, the better bonds will look. Apparently, the market is betting the fiscal Conservative Republicans will keep mass deficits at bay and allow economic growth without massive inflation. That may be betting on too much. The Federal Reserve is not fond of tightening because it shows how horrible their policy has been for being too lose and risks the fallout of a overly lax policy that will happen sooner or later (a down cycle). And Trump seems dead set on running mass deficits like a Democrat which is more akin to his failed Presidential run the last election.

I don't deny $GM is worth looking at at current valuation. That said, I'd pick up #Ford before #GM if I wanted to get into the auto sector.