Corporate revenues and profits will decline across the board. P/E multiples will contract. Europe will be worse than America. China will have any number of Kung Fu moments and the world is going to get really tough once again. The drying up of liquidity will affect everything and then one will feed off the other. The worsening of global economies will impact the markets. The decline in the markets will affect the economies. The downward spiral will feed upon itself.

Prepare yourselves. You will hear more crap than can be imagined during our next leg down. "The technicals says this," and "The buying opportunities are wonderful" and "An investor must stay the course" and all manner of baloney that will be heaped so high that not even Dagwood could eat this sandwich.

-- Mark J. Grant, Southwest Securities

Last Wednesday the Fed Chairman stopped the music when he announced that QE could be terminated by mid-2014.

Investors have been riding in a limo, but the driver, Ben Bernanke, just told us we are about to run out of gas.

Is our investment world going to come to an end as we know it?

No.

But we must begin to grow accustomed to taking the subway.

The trip will likely be a much less smooth and a far more bumpy voyage.

And, at times, it might even become dangerous as we ride through more disturbing surroundings.
At the time of publication, Kass and/or his funds were long C and short IWM and SPY, although holdings can change at any time.

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.

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