If you're wondering:

What the heck happened today with the market, why is everything falling?

> Market at all-time highs, buzzing with happiness

> Government tries to sell 20-year bonds

> Few investors show up at the auction

> Wait… Why doesn’t anyone want to lend to the government?

> Bond yields jump to 5.1% due to lack of demand

> Remember that bonds = future expectations of the economy

> If big funds are avoiding lending to the government for 20 years at 5%, something smells bad

> The market clicks: "Risk-free rate at 5.1% = less reason to be in risky stocks"

> Calculation: "If companies have to refinance debt at these rates, their future earnings are worth less"

> Companies pay more for their debt = Earnings less money = Their stocks are worth less

> All algorithms are making the same calculation simultaneously

> DUMP EVERYTHING

> S&P 500 drops 86 points (1.45%) in minutes

> PLUS: Funds have been SELLING for MONTHS while retail investors keep buying

> The credit market gets nervous

> All this from a boring bond auction that went wrong

> When the piano note is out of tune, the whole symphony sounds bad…

> Is this just a scare or the first crack before something bigger?

> Remember that the biggest collapses start with seemingly insignificant events…

> Finally understand why "the bond market predicts the future"

> Having is a nice warning of the fragility of the market.

Time will tell if this is just a bump in the road or the beginning of the end.

The only certainty = Uncertainty.

And now more than ever, make risk management your best friend.

How do you see it?