Brazilian Bovespa Weakness

It's not a coincidence that we have become very bearish on stocks over the last few months. And it's no coincidence we have remarked that recent strength in US stocks is likely due to repatriation of hot money while within weeks of the statement, China's market has a single day mini-collapse. It's also no coincidence the Brazilian Bovespa, a favorite of Wall Street, is showing similar weakness over the past week. The Bovespa is looking very toppy over the last five or six months and has made no progress in the last six months.

The market correction back in January and February was a very different type of correction than any other correction we have had since the rally started in 2009. And, in fact, American equities have outperformed since that correction. Many markets have recovered from that correction but for how long is the question? Global equities are still in a massive bubble. The biggest bubble in history. They will deflate again as economic doom hits the global economy. It's not a matter of if but when.