No point in burying the lead, folks. The biggest risk to stocks is now bonds, and the speed of yield-curve steepening. Last week may have been a major turning point not in equities, but rather in mentality. Both the Fed minutes — which showed quite a few favored "tapering" quantitative easing (which I guess is no longer "forever") — and volatility in Japan, with the 7%+ collapse in the Nikkei due to bond yields spiking, are shaking confidence in the illusion of stability. This illusion is so often needed for trends to persist over time. I have said for the past several weeks in my writings and various appearances ... (full story)