Bear Market - It's Going to Happen

This is why the current market is scary; the next bear market is going to hurt. Badly.

From http://www.wsj.com/articles/how-to-prepare-for-a-bear-market-in-stocks-1425870192

From http://www.wsj.com/articles/how-to-prepare-for-a-bear-market-in-stocks-1425870192

In the long run we know the market tends to bounce back, but our financial lives are a series of short terms inside one long term.
— Cullen Roche

The difficulty of course is predicting exactly when a bear market is going rear its ugly head. A balanced portfolio might not be sexy, but it's safer in the long run. Something to bear in mind as the market continues to go up.

From http://www.wsj.com/articles/why-bear-markets-are-inevitable-1423838987

From http://www.wsj.com/articles/why-bear-markets-are-inevitable-1423838987

eBonds - Seriously?

80-Year-Old John “Mac” McQuown wants to reinvent corporate bond. 

Basically, it sounds like he wants to issue a corporate bond and then package it with a credit default swap [CDS] and clear it through a clearinghouse, which (hopefully) will have a AAA claims-paying ability and thus creating a AAA corporate bond. He calls it the eBond, short for exchangeable bond.

From http://www.bloomberg.com/news/articles/2015-02-03/meet-the-80-year-old-whiz-kid-reinventing-the-corporate-bond?cmpid=BBD020315&alcmpid=

From http://www.bloomberg.com/news/articles/2015-02-03/meet-the-80-year-old-whiz-kid-reinventing-the-corporate-bond?cmpid=BBD020315&alcmpid=

Hahaha! If only it were that easy, then the failure of the credit-default swaps for the mortgage-backed securities would never have happened and the 2007 Global Financial Crisis would not have occurred. Transforming junk-graded debt into AAA-rated notes was what caused the Great Reset and Mr. McQuown is proposing another way to do just that. 

McQuown's eBond idea sounds like an innovative way to obscure risk from the market and fool the masses. I hope it never sees the light of day. 

Not sure why Bloomberg would put him on the cover of their March 2015 edition and give him such prominent coverage.